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Energy Act 2010

Part 1: Carbon Capture and Storage and Decarbonisation

These provisions create the framework for a financial mechanism to support CCS demonstration projects on commercial-scale electricity generation (which may be powered by any kind of fuel). The Government’s intention is for the mechanism to support four CCS demonstration projects on coal-fired power stations, including the winner of the original competition for a CCS demonstration project launched in 2007. The mechanism will, should it be needed, be able to provide support for additional CCS capacity to be fitted to these initial demonstration projects. There will be a levy imposed on electricity suppliers and funds will be disbursed through assistance schemes or via contractual means to projects selected by a competitive process.

In addition, there is a requirement for the Government to prepare regular reports on the progress that has been made on the decarbonisation of electricity generation in Britain and the development and use of CCS.

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