Commons Sense

House of Commons · Written Ministerial Statement

Carbon Capture, Usage and Storage Track 1 - Contingent Liabilities

13 November 2024 · Department for Energy Security and Net Zero

Proposed by Sarah Jones Lab Croydon West

EnergyEnvironment

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • Sarah Jones (Labour) discusses the government's contingent liabilities for the Carbon Capture Usage and Storage Track-1 clusters.
  • The Minister has laid a Departmental Minute detailing contingent liabilities for the Carbon Capture Usage and Storage programme.
  • Treasury approval has been granted, and arrangements are expected to begin implementation by the end of November 2024.

Issue summary

Sarah Jones (Labour) discusses the government's contingent liabilities for the Carbon Capture Usage and Storage Track-1 clusters.

Action requested

The Minister has laid a Departmental Minute setting out details of contingent liabilities for the Carbon Capture Usage and Storage programme, with Treasury approval granted. Arrangements are expected to begin implementation by the end of this month.

Key facts

  • The government's programme aims to address investor confidence and risk of CO2 store leakage.
  • There are five contingent liabilities associated with the Track-1 contracts, including a Supplementary Compensation Agreement, Revenue Support Agreement, Stranded Asset (discontinuation), Decommissioning Shortfall, and Discontinuation of Capture Project contracts.
  • Maximum exposure for all contingent liabilities is £43,950m across both Track-1 Clusters.
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