Statement from Low Carbon Contracts Company’s Chief Executive, Neil McDermott, in response to the government’s publication of the document ‘Carbon capture, usage and storage: an update on business models’:
"Over the last month, we’ve seen some tremendously exciting updates for the UK’s energy sector. As we look ahead to a new year, we’re at a pivotal moment for committing to actions that will have a critical impact on achieving Net Zero and protecting the long-term health of our environment, economies and societies.
Whilst subject to further consideration and development by BEIS, the draft terms published today point to the huge potential of industrial carbon capture and storage (CCS) in the UK. I’m particularly excited about Low Carbon Contracts Company being a potential counterparty for both Industrial and Power CCS.
I’m hugely proud of Low Carbon Contracts Company's role as a trusted source of advice and expertise, and delighted that we can draw on what we’ve learned to form the backbone of what’s next for low carbon contracts and clean, affordable power generation.
Since 2013, the Contracts for Difference (CfDs) scheme has played a major role in transforming UK renewables. We’ve learned a fantastic amount through delivering the scheme and have intimate insights into how the low carbon contract structure can underpin private investment at low cost. With this in mind, we ’re excited about the role we can play in the next iteration of the low carbon contracts and applying our experience to realise yet more transformative action through the upcoming power, industrial and hydrogen CCS initiatives.”
The document, ‘Carbon capture, usage and storage: an update on business models’, is available at: BEIS - Carbon capture, usage and storage (CCUS): business models.