The Department of Energy and Climate Change are set to fund Carbon Capture Storage Projects by charging the UK taxpayer. The Minister of State for Energy and Climate Change, Charles Hendry, has confirmed £1 billion for the capital costs of the first demonstration project.
Mr Hendry said: “The Government are committed to providing public funding from general taxation for four carbon capture and storage demonstration projects. In the spending review we confirmed up to £1 billion for the capital costs of the first demonstration project.”
When asked by Labour MP, William Bain what the government’s policy was for CCS with regard to taxing the major energy suppliers, Mr Hendry responded: “We will not proceed with a specific levy for carbon capture.”
He added: “Some CCS demonstration projects may also receive funding under the European Commission’s new entrants reserve funding mechanism for CCS projects of up to 50% of their eligible costs.”