Revenue Support Agreement
The Revenue Support Agreement (RSA) is the mechanism designed to incentivise private sector investment and mitigate demand related revenue risks to Transport and Storage companies (T&SCo). The T&SCo form part of the projects involved in the Carbon Capture Usage and Storage (CCUS) sector, providing the industry with their services in transport and storage of carbon dioxide.
LCCC have been advising government on the design and development of the Revenue Support Agreement since the early conceptual design stages in 2020, and will continue to contribute our support the expansion of the CCUS market.
In August 2024, LCCC were announced as the designated counterparty for the RSA under the Carbon Dioxide Transport and Storage Revenue Support (Directions and Counterparty) Regulations 2024.
In December 2024, LCCC signed a revenue support contract with the T&SCo of the East Coast Cluster, Net Zero North Sea Storage, for the RSA. Read more on the contractual announcement here.
Read more about the Revenue Support Agreement here: CCUS: update on the business model for transport and storage indicative heads of terms.