The amount that will be raised under the levy each year will depend on a number of factors including the rate at which projects come forward, the number of projects supported at any time and the cost of each project, which will vary dependent upon a number of factors including technology type, installed capacity, operational performance and location.
The impact assessment which is part of our consultation, ‘A Framework for Cleaner Coal’, published on 17 June provides an estimate of the costs of CCS demonstration under an illustrative scenario up to 2032.
The scenario is based on up to four CCS demonstration projects, one of 300MW and three of 450MW capacity receiving support for up to 15 years. The total cost of support that would be provided from the levy is estimated to be £5.2 – £9.0 billion.
Between 1997 and 2009 the Government spent £77.9 million on the research and development of Carbon Abatement Technologies, including Carbon Capture and Storage (CCS). Spend for CCS technologies only is not available.
This comprises spending under the UK’s Clean Coal Programme administered by the former Department of Trade and Industry, the Technology Strategy Board (TSB), the UK Research Councils and the Environmental Transformation Fund (ETF) Carbon Abatement Technology Demonstration Programme.