The UK Government’s £22bn ($27bn) support for major CCUS and blue hydrogen projects will have a “very significant effect” on electricity bills for consumers and industry, the Public Accounts Committee (PAC) has warned.
Last October, the government confirmed funding would be provided over 25 years to boost blue hydrogen and CCUS in Teesside and Merseyside. Prime Minister Keir Starmer said it will “give the industry the certainty it needs.”
Read more:UK commits £22bn to boost blue hydrogen and CCUS in Teesside and Merseyside
However, the PAC’s recent report, published today (February 7), has said the UK Government’s backing of unproven, first-of-a-kind carbon capture technology to reach Net Zero is high risk and more work on the programme’s affordability for taxpayers and consumers is needed.
With no examples of CCUS technology operating at scale in the UK, the PAC’s inquiry heard it may not capture as much carbon as expected, with international examples showing expectations for its performance are far from guaranteed.
Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said, “Government is gambling on carbon capture technology becoming foundational to achieving Net Zero.
“In this context, it is welcome to see government learning lessons from past failures to grow these programmes by working with clusters of projects that can support each other.
“It must now ensure that it has not sown the seeds of its own failure with this approach by making sure that it can direct support to sectors or locations outside of these clusters.”
Clifton-Brown cautioned that while the hydrogen and CCUS industry is still in its early stages, the government must stay responsive to new scientific evidence, as taxpayers are funding initial progress without guaranteed benefits.
