New Analysis: £500 Million of UK Public Money Wasted on Failing Carbon Capture Projects, Enough to Fund the Winter Fuel Allowance Twelve Times Over

London, UK – Carbon capture (CCS) has failed to significantly reduce carbon emissions around the world for over 50 years. The UK committed or already spent nearly £500 million on carbon capture projects since 2010, and yet no commercial-scale carbon capture projects are operating in the UK. New analysis from Oil Change International, “Funding Failure: The True Cost of Carbon Capture in the UK,” uncovers how the UK government is funneling public money into the most expensive and least effective emissions mitigation option, benefitting the fossil fuel industry, and delaying a just transition to renewable energy.

Key Findings:

• £500 Million Wasted: Since 2010, the UK has committed or already spent almost £500 million on carbon capture projects, with £168 million spent between 2012-2016 on two projects, Peterhead and White Rose, which were scrapped without ever coming online.
• No Commercial Projects in Operation: Despite millions in public investment, no commercial-scale CCS projects are operational in the UK. Planned projects face delays and escalating costs.
• Despite Failure, Billions in New Subsidies: Policies since 2020 have opened the door to £25.26 billion in investments for CCS and hydrogen projects.
• Risky for Worker Security: Offshore oil and gas workers cite job security as the most important factor when considering moving to a new industry. With 80% of CCS projects worldwide failed or on hold, transitioning to CCS is a gamble workers can’t afford.

Prime Minister Keir Starmer cites worsening economic pressures for proposed austerity measures, yet public funds continue to be diverted to carbon capture – propping up a failed technology. Through advocating for carbon capture, the fossil fuel industry delays climate action, distracts from real solutions that would end the fossil fuel era, and does everything in its power to squeeze the last drops of profit from a dying industry at the expense of all of us. Carbon capture and hydrogen subsidies prolong the fossil fuel industry and boost corporate profits. Although carbon capture projects are failing, they are being used to justify fossil fuel expansion, diverting investment from existing and effective alternatives like renewables, energy storage, and energy efficiency.

This research comes out on the eve of the Labour Party’s annual conference. This is the first time in 14 years Labour will convene while in power, offering a powerful opportunity to lead on a just transition that is not reliant on failed technology. Companies linked to fossil fuels will sponsor a fifth of climate events, according to research by Global Witness, so it is crucial Labour leaders are wary of industry tricks. With Big Oil facing a soaring number of climate-focused lawsuits, including many successful claims against misleading advertising, the party must see through the industry’s greenwash and move forward climate plans that actually work for people and planet.

The Peterhead Project – A Case Study in Failure
The proposed carbon capture project at Peterhead – a proposed new fossil gas power station in northeast Scotland – is emblematic of CCS failures. After two previous failed attempts to move forward with CCS at Peterhead, the UK government is pushing for a third time. Even if the new gas power station manages to capture emissions, there is no infrastructure in place to transport or store any of the CO2.

Rosemary Harris, Senior Campaigner, Oil Change International:
“Globally, carbon capture has already had billions of pounds and decades to prove itself and it has failed on every promise.

“As Keir Starmer’s government cuts winter fuel payments for vulnerable pensioners  with one hand, they are handing out billions in subsidies to the oil and gas industry with the other. It is unfathomable that this government is continuing to spend public money on so-called ‘carbon capture’, when £500 million has already produced nothing. 

“Instead of propping up Big Oil’s last ditch efforts to maintain their profits, Keir Starmer and the Labour Party should lead a full, fast, fair, and funded phaseout of fossil fuels. We need to see an end to subsidies for the fossil fuel industry, and a real, funded transition plan that works for people and the planet.”

Alex Lee, Climate Campaigner, Friends of the Earth Scotland:
“The plans for a new gas burning power station at Peterhead, Aberdeenshire are built on the rotten foundations of carbon capture. If approved this dangerous project will lock in higher energy bills and higher climate emissions for the next 25 years. 

“The Scottish Government have been making grand promises about this greenwashing technology for over 15 years and have nothing to show for it. Despite the evidence of carbon capture’s failure, Ministers are doing the same thing repeatedly and expecting different results, pandering to the fossil fuel lobby whilst giving them larger public handouts. 

“Public money would be far better invested in climate solutions that work today to bring down emissions and will improve lives such as home insulation, public transport and affordable renewable energy.”

Immediate Action Must Be Taken

• Remove subsidies for CCS. 
• Prioritise spending public finance on the communities and countries that need it most and on key enabling infrastructure for a just energy transition.
• Push for an end to the Acorn Project, which is not even in the planning system yet, to prevent the fossil fuel industry using CCS as a cover at Peterhead.

The time to act is now to secure a sustainable future for the UK and ensure public funds are used for effective climate action.

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