LCCC is proud to play a key role in enabling Britain’s first of its kind CCUS scheme as we sign the Dispatchable Power Agreement (DPA) contract for the East Coast Cluster in Teesside.
LCCC is proud to play a key role in enabling Britain’s first of its kind CCUS scheme as we sign the Dispatchable Power Agreement (DPA) contract for the East Coast Cluster in Teesside.
Acting as the contractual private law counterparty, and settlement body to the DPA Net Zero Teeside Power project, LCCC’s pivotal role will enable this flexible low carbon power generation technology to play it’s part in the journey to Net Zero.
Based on the innovative and proven Contracts for Difference scheme, LCCC have worked closely with Industry and Government to enable private investment in carbon capture technology linked to decarbonising gas fired power stations.
In addition, LCCC will oversee the Revenue Support Agreement (RSA), which provides financial protection for carbon dioxide transport and storage companies (T&SCo). This mitigates exposure to demand-related revenue gaps while the sector and market matures.
The East Coast Cluster is one of two industrial clusters to be taken forward by the government in Track 1*, it aims to support an average of 2,000 jobs per year. The cluster has the potential to include a diverse mix of low-carbon projects, including industrial carbon capture, low-carbon hydrogen production, negative emissions power, and power generation with carbon capture.**
LCCC’s CEO Neil McDermott said “LCCC has been working closely with the Department for Energy Security and Net Zero (DESNZ) to develop and implement this first of a kind scheme to accelerate towards our Net Zero goals.
This contract signing marks a key milestone as we expand our critical role beyond renewable energy into carbon capture usage and storage (CCUS).
The East Coast Cluster will bring together communities, industry and academia to deliver the CCS infrastructure needed to further decarbonise our electricity mix.
We are looking forward to working with our stakeholders on implementing this and wider decarbonisation schemes that not only help accelerate towards Net Zero but play a vital role in growing our economy and providing future careers in innovative technologies.”
About East Coast Cluster
Net Zero Teeside is a new plant due to be constructed in 2025.
*source - https://eastcoastcluster.co.uk/
**Technologies being added to the cluster subject to the development of business models, budget allocation and contracts allocated.
Useful links: