Funding Failure: The True Cost of Carbon Capture in the UK
Carbon capture (CCS) has failed to significantly reduce carbon emissions around the world for over 50 years. The UK committed or already spent nearly £500 million on carbon capture projects since 2010, and yet no commercial-scale carbon capture projects are operating in the UK. This new analysis uncovers how the UK government is funneling public money into the most expensive and least effective emissions mitigation option, benefitting the fossil fuel industry, and delaying a just transition to renewable energy.
Funding Failure: The True Cost of Carbon Capture in the UK
Prime Minister Keir Starmer paints a bleak picture of the economic situation in the UK, announcing worsening economic and social pressures. The thing is, there is money. It is just being spent on the wrong things.
The UK has already spent or committed nearly £500 million on CCS projects since 2010. £168 million of this was spent between 2012 and 2016 on two projects (Peterhead and White Rose) that failed to get off the ground. Policies announced since 2020 have made available £25.26 billion for CCS and hydrogen projects. Only a fraction of this has been committed to date. This is enough to fund the total 2023 winter fuel allowance payout 12 times over.
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Key Findings:
- £500 Million Wasted: Since 2010, the UK has committed or already spent almost £500 million on carbon capture projects, with £168 million spent between 2012-2016 on two projects, Peterhead and White Rose, which were scrapped without ever coming online.
- No Commercial Projects in Operation: Despite millions in public investment, no commercial-scale CCS projects are operational in the UK. Planned projects face delays and escalating costs.
- Despite Failure, Billions in New Subsidies: Policies since 2020 have opened the door to £25.26 billion in investments for CCS and hydrogen projects.
- Risky for Worker Security: Offshore oil and gas workers cite job security as the most important factor when considering moving to a new industry. With 80% of CCS projects worldwide failed or on hold, transitioning to CCS is a gamble workers can’t afford.