Availability payment plan outlined for UK carbon capture

The UK government has released details on the financial model for carbon capture, usage and storage (CCUS) projects.

Under the arrangement, the government will enter into contractual frameworks similar to Contracts for Difference contracts, with an availability payment linked to the facility performance.

The payment will be paid regardless of whether the facility is dispatching as it looks to “incentivise the availability of low carbon, non-weather dependant” generation.

The government said the model “provides fair return on investment with appropriate risk allocation and without overcompensation”.

More details can be found by clicking here.