CCUS
What is CCUS?
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.
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. Two key business models are:
Industrial Carbon Capture (ICC)
The Industrial Carbon Capture (ICC) business model has been designed to incentivise the deployment of carbon capture technology by carbon intensive industries. The ICC business model is a key component to the Net Zero strategy as it provides 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.
We have been named as the counterparty to the Dispatchable Power Agreement.
Read more about the Dispatchable Power Agreement here: Carbon capture, usage and storage (CCUS): Dispatchable Power Agreement business model - GOV.UK (www.gov.uk)
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 to the Industrial Carbon Capture Contract subject to the successful completion of administrative and legislative arrangements. You can find out more about the business model here.
Latest News:
LCCC Signs DPA for East Coast Cluster CCUS Project
LCCC has signed the Dispatchable Power Agreement (DPA) for the East Coast Cluster in Teesside – a groundbreaking carbon capture, usage, and storage (CCUS) initiative.
As the contractual counterparty for Net Zero Teesside Power, LCCC will help drive low-carbon power generation and oversee revenue support for CO₂ transport and storage.
The project aims to create 2,000 jobs annually and support decarbonisation across industries.
We’ve published the DPA here, where you can also find the DPA register spreadsheet.
Read more here.
