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The Carbon Capture Revenue Support (Directions, Eligibility and Counterparty) Regulations 2024

Jurisdiction: United Kingdom

Commencement: 23rdMay 2024

Amends: New Legislation
Mini Summary

Regulations are introduced for the issuing of carbon capture revenue support contracts to carbon capture entities.

Summary
In order to support the Net Zero Strategy to deliver Carbon Capture Usage and Storage (“CCUS”) targets, Industrial Carbon Capture Business Models have been introduced. These models will be the main mechanism for supporting low-carbon electricity generation, with the goal being to provide revenue support through a private law contract between an organisation who captures carbon dioxide as an eligible carbon capture entity and a carbon capture counterparty*.

* Carbon capture counterparty means a person designated by the Government to be a counterparty on their behalf for the purpose of carbon capture revenue support contracts.

Eligible entities
A carbon capture entity that is eligible for a carbon capture revenue support contract:

  • must be located in the United Kingdom, with a view to the capture and storage of carbon dioxide or any substance consisting primarily of carbon dioxide that has been produced by commercial or industrial activities; and
  • is not an excluded entity under regulation 4.

 

Duties

Various duties apply and are available to view on The Legislation Update Service.

 
  

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