DESNZ signs contracts for UK’s first CCUS projects in Teesside
The Department for Energy Security and Net Zero (DESNZ) has announced the signing of contracts for the UK's first carbon capture, usage and storage (CCUS) projects in Teesside. Construction of the East Coast Cluster project is scheduled to commence in mid-2025, supported by a £21.7bn government funding commitment announced in October 2024. The agreements will unlock £4bn worth of contracts to be awarded by East Coast Cluster projects to supply chains. In addition, the Low Carbon Contracts Company (LCCC) has signed the Dispatchable Power Agreement (DPA) contract, positioning itself as the contractual private law counterparty and settlement body to the DPA Net Zero Teeside Power project, while also overseeing the Revenue Support Agreement (RSA) to mitigate financial risks for carbon dioxide transport and storage companies.