Untangling UK CCUS Track-1 Incentives: A Summary of Cost Support Mechanisms

April 17, 2025

As part of its broader decarbonization strategy, the UK aims to establish a self-sustaining Carbon Capture, Utilization, and Storage (CCUS) market. Achieving this goal requires substantial government support. To drive progress, the government has designated four CCUS clusters nationwide, with a target to capture and store 20–30 million metric tons of CO₂ annually by 2030. To incentivize investment and development within these clusters, several support mechanisms have been introduced. Our latest CCUS report provides a clear summary of the key conditions under the Track-1 framework, with a focus on CAPEX, OPEX, and the payment mechanisms for transportation and storage infrastructure.