The government is spending £22bn on “unproven” technologies which will have a “very significant effect” on energy bills, according to an influential committee of MPs.
There has been no assessment of whether the programme to capture and store carbon from the atmosphere is affordable for billpayers, said a report from the Public Accounts Committee (PAC) of MPs.
The financial impact on households of funding the project has not been examined by government at all, the PAC said.
Money blog: Greggs taking on KFC with new range
Even if the state’s investment pays off, the technology is successful and makes money, there is no way for profits to be shared to bring down bills, it added.
Private sector investors, however, would recoup investment, according to committee chair Sir Geoffrey Clifton-Brown.
“All early progress will be underwritten by taxpayers, who currently do not stand to benefit if these projects are successful,” he said. “Any private sector funding for such a project would expect to see significant returns when it becomes a success.”
That’s despite the vast majority (two-thirds) of the £21.7bn investment coming from levies on consumers “who are already facing some of the highest energy bills in the world”, it said.
But there is no evidence to say the programme will be successful despite the government “gambling” its legally mandated net zero targets on the tech, committee chair Sir Geoffrey added.
There are no examples of carbon capture, usage and storage (CCUS) operating at scale in the UK, according to the PAC report.
As part of its work, the PAC heard the technology may not capture as…
