(Bloomberg) -- The UK’s reliance on carbon capture and storage to reach its net-zero goals poses risks as potential costs escalate and rollout lags behind target, according to the National Audit Office.
While the government has drawn lessons from previous failures to develop carbon capture over the past two decades, the technology remains relatively untested, the NAO said in a report on Tuesday. Slow progress with first phase projects means the UK will struggle to meet its 2030 goals, it added.
“Launching new technology at scale is inherently challenging as there are a range of technical and commercial risks that need to be addressed and there are no established solutions,” according to the report.
Carbon capture will be essential in a decarbonized grid to keep gas-fired power plants that are needed to complement variable renewable energy. The technology can also be used to cut emissions from heavy industries, such as cement or fertilizer production, that don’t have other ways to cut out fossil fuels entirely.
The previous government committed up to £20 billion ($26 billion) for the early deployment of carbon capture, but it didn’t specify which elements of the technology’s development are covered, the NAO said.
In its election manifesto, the new Labour government pledged £1 billion to accelerate the deployment of carbon capture, but no further details were given. The manifesto also doubled down on a pledge for a carbon free grid, a goal that requires effective carbon capture.
The UK’s current carbon capture plans are based on a regional clusters, where groups of projects in industrial areas will share infrastructure to transport emissions to storage sites. Work is under way to finalize negotiations on the support mechanism so that businesses can make final investment decisions this year for a first round of major projects.
--With assistance from William Mathis.
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