Cornwall Insight was commissioned by the Department for Business, Energy and Industrial Strategy (BEIS) to conduct a review of market-based frameworks for power Carbon Capture Usage and Storage (CCUS), as part of BEIS’ wider Review of CCUS Delivery and Investment Frameworks. In addition to this specific workstream on CCUS in power, there were two other workstreams taking place that focus on the frameworks for the CO2 transport and storage (T&S) infrastructure and CCUS in industry.
The Cornwall Insight team worked in collaboration with engineering consultancy WSP to develop a detailed report for BEIS. The report included the identification of possible adaptations to the contract for difference (CfD) scheme to allow for the inclusion of CCUS to ensure suitability. For each of the contract adaptations, the team provided a RAG status using the commercial importance and degree of change required to the existing CfD.
The project team developed three archetype models for CCUS projects and created frameworks to align with the government’s broader policy aims. The expert team also developed alternative market-based options for the integration of CCUS into the power market and conclusions and next steps for the technology.
The report has been used by BEIS to help inform its policy for CCUS in the power sector. The report was successfully delivered to the department in Summer of 2019.
