To ask the Chancellor of the Exchequer, if he will make a comparative estimate of the funding the Government has committed to spend with the amount spent on (a) Carbon Capture Usage and Storage (CCUS), (b) hydrogen production and (c) Direct air capture (DAC) since January 2020.
Answered on
12 February 2024
In the 2023 Spring Budget, the Chancellor announced up to £20bn for the deployment of CCUS in the UK. Commercial negotiations are ongoing. Up to £40m of the CCUS Infrastructure Fund is being spent under the UKRI Industrial Decarbonisation Challenge Fund. Under the Net Innovation Zero Portfolio (NZIP) the UK government has committed £25m to CCUS innovations.
From the £1 billion Net Zero Innovation Portfolio (NZIP), £60m has been committed to the Direct Air Capture and Greenhouse Gas Removal Innovation Programme. Of this around £23 million is funding for the Direct Air Capture technology demonstration projects.
Over £127 million has been allocated to hydrogen production projects from the Net Zero Hydrogen Fund. The first hydrogen allocation round (HAR1) will provide over £2 billion of revenue support from the Hydrogen Production Business Model, which will start to be paid once projects become operational from 2025. Hydrogen innovation projects have been allocated over £170m from the NZIP.