Further written evidence reported to the House
Energy Bill
10:40 am
Dr. Jeff Chapman: What impact will it have on the cost of electricity? In the short term, the kind of figures I have just mentioned are not uncompetitive in relation to the cost of other near zero emission power-generation technologies, such as renewables. CCS is very competitive in that context, and ought to become more so as designs are proven and the price falls. In the long term, we all believe that the EU emissions trading scheme will be the mechanism that induces people to invest in carbon capture and storage and to that extent the technology will not have any effect on the price of power because the power generators would have to buy their allowances in the market regardless of CCS or other technology.
What I will say is that we have the most enormous opportunity, when the Government are going to receive windfalls of very many billions of euros from auctioning EU ETS allowances, to return that money for investment in clean technology in the power industry. Clause 10 of the EU ETS directive suggests that at least 20 per cent. of these revenues should be recycled for various purposes, including CCS. That is good, but what I am saying is, “Government, don’t say that you don’t have the money to support CCS because you certainly do”.