Research and analysis

Carbon capture, usage and storage (CCUS): business models

Updates on the proposed commercial frameworks for transport and storage, power, and industrial carbon capture business models.

Documents

CCUS: Update on the Business Model for Transport and Storage - Heads of Terms, December 2023

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Industrial Carbon Capture: Standard Terms and Conditions (October 2023)

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Industrial Carbon Capture: Standard Terms and Conditions - Comparison (October 2023)

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Industrial Carbon Capture: Front End Agreement - Comparison (October 2023)

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Waste Industrial Carbon Capture: Standard Terms and Conditions (October 2023)

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CCUS: an update on the business model for transport and storage - indicative heads of terms, explanatory note (June 2023)

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Industrial Carbon Capture business model: summary (December 2022)

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Industrial Carbon Capture: Standard Terms and Conditions (December 2022)

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Industrial Carbon Capture: Front End Agreement (December 2022)

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Industrial Carbon Capture: Standard Terms and Conditions - Comparison (December 2022)

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Industrial Carbon Capture: Front End Agreement - Comparison (December 2022)

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Waste Industrial Carbon Capture: Summary Table (December 2022)

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Waste Industrial Carbon Capture: Biogenic CEMS Rider (December 2022)

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Industrial Carbon Capture: Form of Supply Chain Report Part B Spreadsheet (December 2022)

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ICC Contract: Annex 9 - Greenhouse Gas Removal Credits (December 2022)

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Government Response to April 2022 ICC Business Model Consultation (December 2022)

CIF Industrial Carbon Capture Grant Funding Agreement: terms and conditions (December 2022)

Industrial Carbon Capture Grant Funding Offer Letter (December 2022)

CCS Network Code Head of Terms explanatory note, December 2022

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(Annex) Updated Indicative Heads of Terms, December 2022

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CCS Network Code Indicative Heads of Terms comparison, December 2022

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Dispatchable Power Agreement business model summary, November 2022

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Draft: Dispatchable Power Agreement (DPA) terms and conditions: November 2022 update

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Draft: Dispatchable Power Agreement (DPA) front end agreement: November 2022 update

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Dispatchable Power Agreement: Form of Supply Chain Report Part B Spreadsheet, November 2022

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CCUS: government response to a consultation on the Dispatchable Power Agreement business model

Draft: Waste industrial carbon capture contractual riders (Annex A): July 2022

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Draft: carbon capture, usage and storage network code indicative heads of terms: June

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Draft: carbon capture, usage and storage network code heads of terms explanatory note: June 2022

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Draft: Dispatchable Power Agreement (DPA) front end agreement: April 2022 update

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Draft: Dispatchable Power Agreement (DPA) terms and conditions: April 2022 update

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Draft: Dispatchable Power Agreement (DPA) gain share schedule: April 2022 update

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Industrial carbon capture business model: April 2022 update

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Draft: Industrial carbon capture: standard terms and conditions (Annex A): April 2022 update

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Draft: Industrial carbon capture front end agreement (Annex B): April 2022 update

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Dispatchable power agreement (DPA) business model: May 2021 update

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Details

These documents provide details of the proposed carbon capture, usage and storage (CCUS) commercial frameworks for business models that apply to:

  • transport and storage
  • power
  • industrial carbon capture

December 2023 update

The December 2023 update sets out the government’s updated proposals for the business model for transport and storage.

October 2023 update

  • ICC business model: summary (October 2023)
  • ICC: standard terms and conditions (October 2023)
  • ICC: Front End Agreement (October 2023)
  • ICC: standard terms and conditions - comparison (October 2023)
  • ICC: Front End Agreement - comparison (October 2023)
  • Waste ICC: standard terms and conditions (October 2023)
  • Waste ICC: Front End Agreement (October 2023)

June 2023 update

The June 2023 update sets out the government’s updated proposals for the business model for transport and storage (TRI model).

December 2022 updates

Industrial Carbon Capture

  • the December 2022 update outlines the key design aspects of the Industrial Carbon Capture (ICC) business models (including for the waste management sector)
  • this business model update is being published alongside a government response to the consultation on the ICC business models, the ICC Contract (comprising front end agreement and standard terms and conditions), the Greenhouse Gas Removal Credits Annex, ICC Form of Supply Chain Report Spreadsheet, the Waste ICC Contract’s Summary Table, the Waste ICC Contract’s Biogenic CEMS rider, and the CCS Infrastructure Fund (CIF) Grant Funding Agreement offer letter and terms and conditions

CCS Network Code

  • CCS Network Code Head of Terms explanatory note - December 2022
  • we published (Annex) Updated Indicative Heads of Terms to the CCS
  • we published CCS Network Code Indicative Heads of Terms (HoTs) highlighting changes with the previous version of the HoTs (published in June).

November 2022 updates

  • Power CCUS business model - a summary of the full dispatchable power agreement (DPA) business model
  • we published a full DPA contract consisting of a front end agreement, DPA terms and conditions and a supply chain Part B template spreadsheet: November 2022
  • we published a government response to the DPA consultation that ran between 12 April 2022 and 10 June 2022

July 2022 updates

  • The July 2022 update presents key adaptations to the industrial carbon capture (ICC) business model for carbon capture, use, and storage (CCUS) projects in the waste management sector
  • some information contained in the July 2022 update may also apply to emitters in other industrial sectors (‘generic’ ICC Contract holders)
  • alongside this July 2022 update on the ICC business model for CCUS projects in the management waste sector, we have also published the draft Waste ICC contractual riders
  • we will continue to engage with waste management stakeholders upon the publication of this update and take into account these views as we develop the final Waste ICC Contract, including through Waste Expert Groups held over the summer. If you wish to be involved in any future stakeholder events in connection with the Waste ICC business model, please contact us via email at ICCbusinessmodels@beis.gov.uk

April 2022 updates

  • Power CCUS business model - a summary of the full draft dispatchable power agreement (DPA) business model, including an annex on the proposed gain share mechanism, plus consultation questions
  • alongside the DPA summary and consultation, we have published a full draft DPA contract consisting of a front end agreement, terms and conditions and gain share schedule
  • industrial carbon capture (ICC) business model - the April 2022 update on the proposed ICC business model covers updates on the commercial framework including the payment mechanism (asymmetric payments, Transport and Storage (T&S) fees, CCS projects that also include CCU, and an update on free allowances) and risk allocation, mitigations relating to the risk of the excessive carbon intensity of industrial products, opex reopener, extension provisions, and adaptations for Combined Heat and Power (CHP) projects. It includes an update on the legal contractual framework, including termination, Operational Conditions Precedent (OCPs), the Milestone Requirement, Qualifying Changes in Law, metering and reporting requirements. We also outline the changes to the model that are being considered for waste management CCS projects. Finally, this update includes information on the proposed Cluster Sequencing Process Track-1 negotiation approach and next steps
  • alongside the ICC business model April 2022 update, we have published a draft ICC contract for initial projects consisting of Draft Terms and Conditions and a Front-End Agreement
  • in addition, we have published a summary of the ICC business model and including a consultation on the proposed business model

January 2022 update

This update builds on previous Transport and Storage (T&S) business model publications and provides further details on the T&S Regulatory Investment (TRI) model. The January 2022 update also includes an indicative Heads of Terms document.

November 2021 update

The November 2021 update on the proposed industrial carbon capture(ICC) business model and the proposed dispatchable power agreement (DPA) covers updates on CCUS supply chains and the eligibility of waste management CCUS projects to apply for the ICC business model.

October 2021 updates

  • Power CCUS business model – the update on the proposed dispatchable power agreement (DPA) business model includes further updates to the DPA payment mechanism and legal and contractual framework for power CCUS
  • alongside the DPA business model October 2021 update, we have published an updated set of provisional Heads of Terms representing the policy developments included in the May 2021 and October 2021 updates
  • Industrial carbon capture (ICC) business model - the October 2021 update on the proposed ICC business model covers updates on eligibility criteria, capital grant support, and the commercial and contractual framework, including further elements of the payment structure, risk allocation and ‘Capture as a Service’ (a delivery model in which companies could provide carbon capture as a ‘service’ to industrial facilities)
  • alongside the ICC business model October 2021 update, we have also published the provisional Heads of Terms and Front-End Agreement for the ICC contract

Please read these documents in conjunction with the December 2020 and May 2021 updates.

For further information on CCUS Business Models see the related consultation Carbon capture, usage and storage (CCUS): business models.

The business models focus on deployment development as set out in the Energy ten point plan and the Energy white paper.

July 2021

Update on Phase-1 eligible clusters and Phase-2 timeline

May 2021 update

Published 21 December 2020
Last updated 20 December 2023 + show all updates
  1. Added CCUS: Update on the Business Model for Transport and Storage - Heads of Terms, December 2023.

  2. We have published updates to: business model - summary, standard terms and conditions, Front End Agreement, standard terms and conditions - comparison, Front End Agreement - comparison, Waste standard terms and conditions and Waste Front End Agreement.

  3. Added government's updated proposals for the business model for transport and storage (TRI model).

  4. December 2022 summary update outlines key design aspects of ICC business models (also for waste management sector) alongside ICC business models consultation govt response, ICC Contract (front end agreement / standard T&Cs), Greenhouse Gas Removal Credits Annex, ICC Form of Supply Chain Report Spreadsheet, Waste ICC Contract’s Summary Table / Biogenic CEMS rider, CCS Infrastructure Fund (CIF) Grant Funding Agreement offer letter / T&Cs.

  5. We have published: CCS Network Code Head of Terms explanatory note; (Annex) Updated Indicative Heads of Terms and CCS Network Code Indicative Heads of Terms (HoTs) comparison with the previous version of the HoTs (published in June).

  6. We have published: Power CCUS business model - a summary of the full dispatchable power agreement (DPA) business model; full DPA contract consisting of a front end agreement, DPA terms and conditions and supply chain Part B template Spreadsheet; government response to the 2022 DPA consultation.

  7. July 2022 update: Industrial carbon capture business model: adaptations for the waste sector

  8. Draft carbon capture, usage and storage network code heads of terms and explanatory note added.

  9. Added updated industrial carbon capture (ICC) and dispatchable power agreement (DPA) business models, including draft terms and conditions, front end agreements and gain share schedule and guidance for the DPA. Added links to consultations on both business models.

  10. Latest version of Transport and Storage (T&S) business model including Heads of Terms added, providing further details on the T&S Regulatory Investment (TRI) model.

  11. Added November 2021 update on the industrial carbon capture and dispatchable power agreement business models.

  12. Further updates to the dispatchable power agreement (DPA) and industrial carbon capture (ICC) business models added.

  13. Business model updates covering transport and storage, the dispatchable power agreement (DPA) and industrial carbon capture (ICC) added.

  14. First published.