(2) which Government Departments contributed to the carbon capture and storage demonstration procurement project risk register;
(3) what level of (a) inherent and (b) residual risk has been assigned to each risk in the risk register for the carbon capture and storage demonstration project; and what steps (i) have been taken and (ii) are planned to be taken to mitigate each risk.
The carbon capture and storage demonstration project team maintains a register of the risks to the competition. In the register, the Department records risks and associated mitigating factors openly and honestly, and away from the gaze of the bidders. The release of this information would not be in the public interest because it might have an inhibiting effect on the frankness and candour of the risk assessments or on the assessment of likelihood and impact of risks, and its release would also prejudice the Department's commercial interests, in particular, the Department's bargaining position and its ability to negotiate a competitive deal with the bidders.
The risk register was originally created by the Department for Business, Enterprise and Regulatory Reform (BERR) but responsibility for it transferred to the Department of Energy and Climate Change (DECC) following its creation in October 2008. HM Treasury and Department for Transport indirectly contribute to the risk register through normal project governance. No other Government Departments have contributed to the risk register.
For the demonstration project announced in November 2007, we set out in the Project Information Memorandum the expectation that CCS technologies would be demonstrated on the flue gases of 300-400MW electrical output. The minimum requirement of net electrical output for this project will be confirmed in the invitation to negotiate to be issued to bidders.
We will shortly be consulting on proposals for additional demonstration projects and have already set out our intention to consult on a proposed 300MW net electrical output minimum requirement. The minimum requirement will be confirmed after the consultation has been completed.
(2) what the purpose of the carbon capture and storage demonstration procurement project risk register is; and if he will make a statement.
[holding answer 3 June 2009]: The carbon capture and storage demonstration procurement project risk register was created in June 2007 and was last updated on 29 May 2009.
The risk register is a repository of information about risks affecting the project. It provides identification, estimation, impact evaluation and countermeasures for all risks to the project. It acts as a control tool for the management team to manage the project’s exposure to risk and to keep that exposure to an acceptable level in a cost effective way. Risks are evaluated using assessments of likelihood, impact and proximity and are allocated to “owners” to ensure that agreed and documented actions are taken and reported on an ongoing basis.
I refer my hon. Friend to the answer I gave to my hon. Friend the Member for Barnsley, Central (Mr. Illsley) on 4 June 2009, Official Report, column 631W.