Industrial Carbon Capture Delivery and Investment Framework Review

BEIS committed in the Clean Growth Strategy (CGS) to review the delivery and investment models for Carbon Capture, Usage and Storage (CCUS). This work will inform the review, focussing specifically on industrial carbon capture infrastructure. Carbon capture technology is proven but a number of factors drive up costs and inhibit investment. Addressing these barriers could improve affordability, enable more cost-effective industrial carbon capture projects, and make them investable, ultimately enabling their deployment and operation. In the past UK CCS projects have tended to be based on a "full chain" (capture-transport-storage) model, which requires complex risk sharing arrangements, including for funding and revenue risks, but also technical CCS risks like carbon volume flow and CO₂ storage liability. In this work we would like to explore whether "part chain" business models can be more cost-effective, and this work is focussed on the industrial capture element of the chain. Aims and objectives The aim is to identify the range of business models that could enable cost-effective deployment and operation of ICC technology. The objectives are to: " Document and review the market failures and barriers that are preventing the deployment of ICC. " Identify the business models that will be able to address these issues. " Qualitatively appraise the business models in relation to their ability to enable cost-effective ICC deployment and operation, characterising them to identify how they drive cost-reductions. " Identify which business models should be subject to further more detailed analyses to test their suitability and better understand their relative performance prospects, including suggestions as to the analyses that will be required. Work packages This project will involve two work packages: Work Package 1: Barriers to deployment and operation of industrial carbon capture infrastructure in the UK and global lessons learned Objective: Document the existing barriers/challenges/issues that prevent the deployment and operation of Industrial Carbon Capture infrastructure in the UK, in particular those that are material to the commercial case for private sector investment in industrial carbon capture (e.g. insofar as they increase the risk and cost of deploying and operating industrial carbon capture infrastructure). Work package 2: Define the range of possible business models. Objective: Document the range of potential business models that will enable the development and operation of industrial carbon capture in the UK including how and the extent to which they will address the challenges identified in Work Package 1. An overarching point is that the work should focus specifically on a part-chain industrial carbon capture business model, where the transport and storage network is developed separately.

The final output from the work will be a standalone report ready for publication and dissemination.

Please see the Invitation to Tender document

Additional information: How to Apply If you wish to take part in this procurement please see the attached Tender documents attached to this Notice and send your completed Proposal to Joshua Phillips at address stipulated in the "Who to Contact" section. Any late submissions will not be considered. BEIS reserves the right to halt the procurement process and to not award a contract. BEIS will not be held liable for recovery of costs from unsuccessful bids if a contract is not awarded. All costs will be borne by the bidding organisations. If a contract is created it will be upon BEIS Standard Terms and Conditions or the Short Form Terms and Conditions, which are available on Contracts Finder with this notice. Completed tender submission must be returned by post to BEIS, address given at the top of this advertisement, by 20th April 2018. We require 2 hard copies (one of which must be signed). Electronic versions of your bids are to be sent AFTER the deadline to Joshua Phillips ([email protected]). After reviewing and evaluating the written proposals, BEIS may decide to hold bid clarification meetings with suppliers. If successful and upon contract signature, the supplier is expected to attend a kick-off meeting taking place w/c 30th April. Project completion is required by 24th August 2018.