Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department plan to take to ensure value for money from the £3.9 billion of funding allocated for carbon capture and storage and green hydrogen in 2025-26.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
A formal part of the policy design and delivery process involves reviewing prior relevant efforts to ensure government is maximising value for money wherever possible. Our value for money judgement is evidenced by appraisal and analysis developed in line with the HMT Green Book and has supported policy development at each stage of the CCUS programme and the first Hydrogen Allocation Round (HAR1). All future carbon capture build out projects and subsequent HARs will require approved business cases, which will contain robust value for money assessments. The business models supporting both CCUS and electrolytic ‘green’ hydrogen are designed to address the risks that currently are a barrier to first of a kind projects, incentivise project behaviour in line with government objectives and deliver value for money for consumers and taxpayers.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the amount of private investment that will be raised for carbon capture and storage and hydrogen projects by the £3.9 billion of public funding announced in paragraph 3.52 of the Autumn Budget 2024.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
On 4th October, the government reached commercial agreement with the private sector and announced up to £21.7bn of available funding over 25 years to launch the UK’s new carbon capture, usage and storage industry. We expect this funding to crowd in £8bn in private sector investment for the 25 years, and demonstrating the investability of CCUS will unlock a further pipeline of billions of pounds in private sector investment. It is estimated that industry has spent £1 billion in investment already. The government also announced over £2bn of funding over 15 years for the projects in the first Hydrogen Allocation Round (HAR1). These projects will invest over £400m of private capital during construction across the UK.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, which spending programmes their Department devolves for administration to (a) local government in England and (b) other local spending bodies; and what the budget is of each such programme for each year for which budgets are agreed.
Answered by Graham Stuart
Details of major funding programmes, including those administered by local government or other local bodies, are available on Gov.uk.