Carbon Capture, Usage and Storage

Carbon Capture, Usage and Storage (CCUS) is an advanced process designed to intercept carbon dioxide (CO2) emissions generated by Energy Intensive Business and Industrial Emitters before their release into the atmosphere.

The objective is to avoid the excessive accumulation of this gas, in the atmosphere, which contributes to global warming and climate change.

A diagram showing how ccus is produced

CCUS business models

To encourage the widespread adoption of CCUS technologies, the government has introduced several business models tailored to different industries and emission sources.

We are counterparty to three different contract types related to CCUS.

These are the:

For each of these agreement types one contract has been allocated to date.

Industrial Carbon Capture (ICC) and Waste Industrial Carbon Capture (WICC)

The Industrial Carbon Capture (ICC) and the Waste Industrial Carbon Capture (WICC) business models have been designed to incentivise the deployment of carbon capture technology by carbon intensive industries.

The ICC business models are a key component to the Net Zero strategy as they provide innovation in hard to abate industries that have largely been the powerhouse to the UK economy for over a century.

Dispatchable Power Agreement (DPA)

Dispatchable Power Agreement business model is designed to incentivise generators to capture and store carbon which would historically be emitted and support power generation with carbon capture and storage.

We have been part of the Government advisory team developing the Dispatchable Power Agreement, bringing our contract management expertise and a deep understanding of the structure and implementation of the CfD mechanism.

Read more about the Dispatchable Power Agreement.

CCUS publications

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Our role

To support in the development of the CCUS contracts, we have provided guidance and advice to the government on how we can best operationalise and manage the contracts to give the schemes longevity, future investment opportunities and to ensure their future success.

We utilise our extensive expertise and experience to ensure we deliver the best contractual and financial mechanisms that provide a well-structured approach for the deployment of the CCUS in the UK.

We are the nominated counterparty for the Industrial Carbon Capture Contract subject to the successful completion of administrative and legislative arrangements.

Find out more about the Industrial Carbon Capture model.

Latest news

LCCC Signs First Industrial Carbon Capture Contracts

LCCC Signs DPA for East Coast Cluster CCUS Project

Pioneering CCUS Cluster Contract Signed