The UK Government Unveils Significant CCS Funding in 2023 Spring Budget
16th March 2023
The Global CCS Institute welcomes the UK government’s new carbon capture and storage (CCS) funding commitment, as announced by Chancellor Jeremy Hunt during the release of the Spring Budget 2023. As outlined in the budget, the government commits to investing £20 billion to scale-up CCS projects across the UK.
The new funding will be rolled out over a period of twenty-years, and will support the development of CCS initiatives, particularly in North Wales, North West of England and the East Coast. The announcement builds on the governments cluster sequencing process, where £1 billion was previously announced to scale-up CCS efforts, selecting the Hynet Cluster and the East Coast Cluster as initial beneficiaries.
A short list of CCUS projects for deployment will be announced in late March. The government also intends to allow for more CCS projects to enter the selection process for Track 1 clusters, which aims to see two clusters deployed by the mid-2020’s. The budget further states that two additional CCS clusters will be selected through a Track 2 process, with further details upcoming.
“This new funding commitment will lead to significant emissions reductions from industry across the UK, and will ensure that CCS clusters will play their part in tackling the climate crisis”, said Guloren Turan, General Manager of Advocacy and Communications with the Global CCS Institute. “This £20 billion pledge will also provide investors with the confidence they need to pursue their CCS ambitions. The Institute keenly looks forward to the upcoming projects that will be part of the cluster sequencing process overall”, added Turan.
The UK governments CCS efforts is part of its broader climate target to reach net-zero by 2050, which was signed into law in 2019. During the budget announcement, Chancellor Jeremy Hunt re-affirmed the governments aim to capture 20-30 million tonnes of CO2 per year through CCS by 2030, and anticipates 50,000 jobs will be supported through CCS investment.
About the Global CCS Institute: The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and deliver climate neutrality. For more information, visit www.globalccsinstitute.com
Media Contact: Ruth Gebremedhin (London): +44 7950278261 email@example.com