Business
Billions for ‘unproven’ carbon capture technology will have ‘very significant’ impact on energy bills, MPs warn
The government is spending £22bn on “unproven” technologies which will have a “very significant effect” on energy bills, according to an influential committee of MPs.
There has been no assessment of whether the programme to capture and store carbon from the atmosphere is affordable for billpayers, said a report from the Public Accounts Committee (PAC) of MPs.
The financial impact on households of funding the project has not been examined by government at all, the PAC said.
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Even if the state’s investment pays off, the technology is successful and makes money, there is no way for profits to be shared to bring down bills, it added.
Private sector investors, however, would recoup investment, according to committee chair Sir Geoffrey Clifton-Brown.
“All early progress will be underwritten by taxpayers, who currently do not stand to benefit if these projects are successful,” he said. “Any private sector funding for such a project would expect to see significant returns when it becomes a success.”
That’s despite the vast majority (two-thirds) of the £21.7bn investment coming from levies on consumers “who are already facing some of the highest energy bills in the world”, it said.
But there is no evidence to say the programme will be successful despite the government “gambling” its legally mandated net zero targets on the tech, committee chair Sir Geoffrey added.
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PM to invest £22bn in carbon capture
There are no examples of carbon capture, usage and storage (CCUS) operating at scale in the UK, according to the PAC report.
As part of its work, the PAC heard the technology may not capture as much carbon as expected.
International examples show the government’s expectations for its performance are “far from guaranteed”, it heard as part of its inquiry.
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A threat to net zero
This lack of proof of the technology working is a threat to the UK reaching its net zero 2050 emissions targets.
Last year the government downgraded the amount of carbon it expects to store each year as the goals were seen as “no longer achievable”, but no new targets have been announced, creating a shortfall in the path to net zero.
It is now “unclear” how the government will reach its goal, the PAC report said.
“Our committee was left unconvinced that CCUS is the silver bullet government is apparently betting on”, Sir Geoffrey said.
The £22bn investment was due to be made over 25 years and into five CCUS projects.
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