Carbon Capture and Storage (CCS) Infrastructure Fund

Country / jurisdiction: United Kingdom · Year: 2021 · Status: In force · Level: National · Type: Voluntary

The Carbon Capture and Storage Infrastructure Fund (CIF) supports the UK government's plan to deploy CCUS in a minimum of two clusters by the mid-2020s, and four clusters by 2030 at the latest, with an ambition to capture 10MtCO₂/year by 2030. The CIF forms an important part of the package of government support that is expected to be allocated to clusters through the proposed Cluster Sequencing process.The CIF will provide GBP 1 billion of investment in CCUS in the UK and will primarily contribute to the capital costs of establishing CO2 transport and storage infrastructure and early industrial capture projects. The CIF will be allocated to projects, alongside the other government support mechanisms, via the two-phase cluster sequencing process.CIF funding is expected to be allocated through the proposed sequencing process, which will be executed across two Phases:Phase-1: government will provisionally sequence those which are most suited to deployment in the mid-2020s onto Track-1;Phase-2: government will receive applications from individual projects across capture applications to connect to the Track-1 clusters.

The CIF primarily funds the capital costs of establishing transportation and storage infrastructure and early industrial capture projects, with additional revenue support mechanisms. Power CCUS projects will be supported by a Dispatchable Power Agreement (DPA), funded through levies on energy consumers.

Official source: https://www.gov.uk/government/publications/design-of-the-carbon-capture-and-storage-ccs-infrastructure-fund/the-carbon-capture-and-storage-infrastructure-fund-an-update-on-its-design-accessible-webpage