Department of Energy and Climate Change

Reference Number: N/A

Open Date: 2010-07-08
Close Date: 2010-09-15

On 8 July 2010 DECC announced the start of a market sounding process for the UK’s CCS Demonstration Programme. This is not a formal consultation, but is intended to help the Department to explore workable options for the CCS demonstration project selection and funding processes, and learn about projects being considered by industry..

The Market Sounding Information for Industry document contains information for interested parties to inform their feedback in the market sounding process.
Section two provides the background to the programme; section three discusses a number of key elements for projects, on which we are seeking views, and section four explains some of the background to the arrangements for providing financial support including options for risk sharing.

We expect the market sounding period to last approximately 2 months – from 08 July to 15 September.

We will use the information gathered during market sounding to inform the design of our selection process and project requirements.

Parties that are considering seeking UK Government support for CCS demonstrations under this programme are invited to contact Liz Kitchen via the OCCS mailbox occs@decc.gsi.gov.uk to register their interest in talking to the Department about the following topics:

• Projects you are developing or considering – including any details regarding fuel, capture technology, size, location, transport and storage options, timing, how far developed your project is etc;
• Public funding provision – your views on the proposed output based payment mechanism and possible flexibility around this approach;
• Key risks in the chain – what and where they are, whether you have options to manage them;
• Practicalities of applying for one or a number of the projects – your views on the Department's proposed selection models, how long you will need to prepare your application, what information you need from Government at each stage in the model to enable your application; and
• Scope and shape of the current CCS demonstration programme – particularly in the light of the Committee on Climate Change’s recent report which recommends the inclusion of demonstration on gas plant.

We have provided a standard form below, which covers in more detail the areas which we intend to explore. We welcome submissions in this format from all interested parties.

DECC would like to publish at least some of the information submitted in response to market sounding. Ideally DECC would like to publish all information submitted, including all potential projects, and asks submitting parties to indicate clearly any information they do not want published.