Energy Bill Factsheets: Carbon Capture and Storage
www.decc.gov.uk/energybill
For further information please contact energybill@decc.gsi.gov.uk
Clean Coal Policy
Framework
Coal plays a vital role today in
providing electricity supplies in
the UK and globally – it is an
integral part of a diverse and
secure low carbon energy mix.
As a fuel coal is reliable, low
cost with abundant remaining
reserves, but it is also the fuel
with the highest carbon
emissions.
Coal-fired power stations can
only continue to contribute to
our energy security if we can
find ways to reduce
substantially their carbon
emissions. That is why the
development and deployment of
carbon capture and storage
(CCS) is so critical.
Our ambitious new policy
framework for clean coal
(published on 9th November) is
designed to contribute to the
decarbonisation of the power
sector and our 2050 climate
goals. The key elements of this
framework are:
No new coal without CCS – a
programme of up to four
commercial-scale CCS
demonstration projects, funded
by a new CCS Incentive, and a
requirement for any new coal
power station to demonstrate
the full CCS chain at
commercial-scale.
A long term transition to
clean coal – we expect
demonstration projects to
retrofit CCS to their full capacity
by 2025, with the help of the
CCS Incentive. A rolling review
process, with a planned report
by 2018, will consider the
appropriate regulatory and
financial framework to further
drive the move to clean coal.
1 | Carbon Capture and Storage Incentive
What will be in the Bill
The Bill creates the framework for a new Carbon Capture and
Storage (CCS) Incentive mechanism that will support up to four
commercial-scale CCS demonstration projects.
The Incentive is comprised of two elements – a levy on
electricity supplies (to be paid by electricity suppliers) and a
mechanism for disbursing funds to selected CCS projects. The
collection of the levy and the disbursal of funds will be
administrated by Ofgem (O