Working with us

We are keen to play our part in helping developers identify and implement viable CCS projects. We are advocates of spatially managing the various offshore relationships that may impact on any one storage or pipeline proposal, for example potential overlapping interests of offshore wind.

 

Guidance on rental policy

Guidance on rental policy

Cost is a central issue in the viability of CCS, along with the large scale demonstration of the integrated capture, transport and storage technologies. The role of UK government (and the EU) in supporting the industrial scale demonstration of CCS is essential. DECC has completed its first competition, which made a substantial contribution to knowledge sharing, and is now managing a UK delivery programme that includes a new competitive funding process.

The European Union is providing financial support through funds from the European Energy Programme for Recovery (EEPR) and the issue of up to 300 million European Emissions Trading allowances from a new entrant reserve (NER300). DECC put forward six potential UK projects and a decision is due during 2012.

We do not have a standard set of fees for CO2 projects, but during the AfL process we are able to assess the fee elements with developers taking into account the particulars of their projects. We are aware that CO2 storage is at a demonstration and pre-commercial phase.

Support to applicants for competition funding

Support to applicants for competition funding

We are keen to support the development of CO2 storage projects, and understand that it may be necessary for a developer applying for EU or UK funding to demonstrate how they will obtain the necessary rights to store CO2 at a specific site. Where appropriate, we support such applications by setting out the process by which we will grant storage rights in a letter that can be submitted as part of a prospective developer's application for funding.

Any such rights granted by us will be conditional upon an applicant obtaining a suitable carbon storage permit from DECC or the Scottish Government.

Throughout 2011 we will continue to work up our template lease agreement. A standard form of lease will be made available to wider industry for their information. This standard form will be open to amendment depending on future competition guidelines.

Pipelines

Pipelines

A pipeline lease will be required from us for any CO2 transport pipeline that is installed.

We intend to grant pipeline rights on the basis of the standard terms and conditions. We are unlikely to grant exclusive pipeline rights for a CO2 pipeline project that is unconnected to credible capture and storage projects.