Asked by: Julian Lewis (Conservative - New Forest East)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what his policy is on the awarding of Government contracts to China for ready-fabricated steel; what assessment he has made of the potential impact of those contracts on the Government's environmental goals; and whether those factors are considered when awarding contracts for fabricated steel to be used in constructing (a) Net Zero Teeside and (b) other carbon capture and storage schemes.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Public procurement policy on steel is set out in Procurement Policy Note (PPN) 022 which encompasses different types of steel. Based on full Departmental returns that provided data to the Department for Business and Trade, including on the origin of steel, the Government's procurement data shows that in financial year 2024/25, only c.£29k worth of publicly procured steel was of Chinese origin, out of a total of c.£372m worth of publicly procured steel.
Steel used in Net Zero Teesside (NZT) and other carbon capture and storage schemes falls outside of public procurement. NZT are using an open and transparent tendering process and will be awarding contracts based on capacity, capability and other factors. I have met with the project developer to express my concern about the reported potential use of Chinese steel in this project and we will continue to engage with the CCUS sector to promote the industry-led voluntary ambition of 50% UK local content across the value chain and we have confidence that NZT are on track to achieve more than 50% UK content.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation under that contract.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The current Contract for Difference (CfD) and recently announced Low-Carbon Dispatchable CfD agreements will be in place until 2031 and do not include contractual requirements for the development of carbon capture and storage (CCS) at the site. The focus of the new CfD is ensuring security of supply for the contract duration, and the development of CCS in the future remains under consideration.
The Government published an impact assessment in early 2024 as part of its consultation on support options for large-scale biomass generators. This assessment was consistent with the views of the Intergovernmental Panel on Climate Change (IPCC) which recognise that bioenergy can play a significant role in decarbonising economies, provided policies are in place to mitigate the use of unsustainable biomass.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps the Department is taking to expand access to nature-based carbon sequestration schemes for landowners.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Nature-based solutions are essential for tackling the climate and biodiversity crises together. Ecosystems such as forests, saltmarshes and grasslands actively absorb carbon and enhance climate resilience, while England’s peatlands, our largest terrestrial carbon store, play a critical role in preventing emissions when kept in good condition. Protecting and restoring these systems is indispensable for the Government’s net zero pathway and for safeguarding habitats that support native species.
The Government is investing significantly in nature’s recovery, including £1 billion in tree planting and support for the forestry sector over this Parliament, alongside funding to improve and restore peatlands to protect and enhance natural carbon stores and sinks. This will make a significant contribution to the Environment Act targets, including improving the quality of water and spaces for wildlife so biodiversity can thrive.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether UK (a) climate and (b) carbon capture, usage and storage initiatives are coordinated with U.S. federal or state programmes.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The United States is Britain’s closest ally. Our two countries have a long, deep history of close cooperation. This is demonstrated by the Technology Prosperity Deal signed by the Prime Minister and the President during his recent State Visit, which included ambitious civil nuclear collaboration.
The United States are also a key UK partner in Carbon Capture, Utilisation and Storage, as the world leader in deployment and current capacity, on which we each engage multilaterally within the Carbon Management Challenge and the Clean Energy Ministerial CCUS Initiative.
Asked by: Seamus Logan (Scottish National Party - Aberdeenshire North and Moray East)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what progress he has made on the carbon capture and storage project at St Fergus.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The government has announced its support for Acorn and is providing the development funding to advance its delivery. A final investment decision will be taken later this Parliament, subject to project readiness and affordability.
Since the Spending Review, we have worked closely with Acorn to understand what they need to keep them progressing towards FID and are confident we can continue collaborating on that.
We have also established a ministerial led forum, where government, regulators and industry representatives come together on a regular basis to drive forward momentum for the Scottish cluster.
Asked by: Josh Fenton-Glynn (Labour - Calder Valley)
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 is taking to protect natural carbon sinks.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Nature-based solutions are fundamental to achieving net zero and biodiversity recovery. We are investing £7 billion in nature’s recovery, including £816 million for tree planting and £85 million on improving and restoring our peat, in order to protect and enhance natural carbon sinks.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how much funding his Department plans to provide to (a) transport and (b) storage companies to help support their carbon capture, usage and storage business models in the next 12 months.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
In the 2025 spending review, the Government allocated £9.4 billion over the Spending Review period.
The bulk of public funding for Track 1 is only provided once projects are operational. Transport & Storage Companies (T&SCos) operate a Regulated Asset Base model regulated by Ofgem. This allows them to recover costs during operation by charging connected capture projects - expected from 2028 onwards.
The government has announced its support for the Acorn and Viking clusters and is providing development funding to advance their delivery, including approximately £200m for Acorn. The exact amounts for each cluster and funding schedule will be subject to negotiations, value for money and deliverability assessments.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when his Department plans to (a) publish a revised timeline for the track-2 cluster sequencing process and (b) provide funding for non-pipeline carbon capture projects.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government announced its support for the Acorn and Viking clusters in the Spending Review and is providing the development funding to advance their delivery. We've been working with clusters to understand what they need to keep them progressing to a final investment decision (FID) this Parliament, subject to project readiness and affordability.
Non-pipeline methods of CO2 transportation (for example, road, rail and ship) will play an integral role in achieving decarbonisation across multiple regions and sectors of the economy, to meet our carbon budget targets and net zero carbon emissions by 2050.
Funding for NPT projects will be subject to future project selection processes and associated deliverability and value for money considerations.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what funding he has allocated to support innovation in greenhouse gas removals in each year of this Parliament.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Greenhouse Gas Removals Innovation programme, delivered under the Net Zero Innovation Portfolio, developed 14 First-of-a-Kind Demonstrator plants nationwide.
This Government has a clear focus on commercial deployment. The HyNet Track-1 expansion Project Negotiation List, which includes two Greenhouse Gas Removal projects, was published on 5 August 2025. These projects will now proceed to the negotiations phase of the selection process. Government has also made a significant funding commitment of up to £21.7billion, over 25 years, to kickstart the Carbon Capture Usage and Storage industry.
Allocation of funding to UKRI for research and innovation is ongoing so forecasts on future innovation spend are not currently available.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to replace the Greenhouse Gas Removals Innovation Programme.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Greenhouse Gas Removals Innovation programme, delivered under the Net Zero Innovation Portfolio, developed 14 First-of-a-Kind Demonstrator plants nationwide.
This Government has a clear focus on commercial deployment. The HyNet Track-1 expansion Project Negotiation List, which includes two Greenhouse Gas Removal projects, was published on 5 August 2025. These projects will now proceed to the negotiations phase of the selection process. Government has also made a significant funding commitment of up to £21.7billion, over 25 years, to kickstart the Carbon Capture Usage and Storage industry.
Allocation of funding to UKRI for research and innovation is ongoing so forecasts on future innovation spend are not currently available.