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Energy: Carbon Capture and Storage

Volume 712: debated on Tuesday 7 July 2009

Question

Asked by

To ask Her Majesty's Government whether they plan to introduce incentives for the private sector to develop carbon capture and storage plans for heavy industry. [HL4735]

Our consultation document, A Framework for the Development of Clean Coal, published on 17 June (www.decc.gov.uk/en/content/cms/consultations/clean_coal/clean_coal.aspx) sets out our proposals for supporting the large-scale demonstration of carbon capture and storage (CCS) technologies.

It also sets out our rationale for prioritising the demonstration of CCS on coal-fired power stations and our proposals for a levy on electricity suppliers that will provide the necessary funds to support the demonstration of CCS.

Our current view is that because the funds will derive from a levy on electricity suppliers it seems reasonable that only projects that supply electricity to the public supply should benefit. This would not necessarily preclude industrial-based power projects being considered for support under these arrangements and we would welcome views on this point as part of the consultation that closes on 9 September.