Decarbonisation Readiness: decisions on update to 2009 Carbon Capture Readiness requirements

In March 2023, the previous government published a consultation on proposals to expand the 2009 Carbon Capture Readiness (CCR) requirements, now renamed Decarbonisation Readiness requirements (DR). Building on a number of years of engagement, a government response released this week (15/10/24) outlines final decisions on the updates, which will apply only to England.

Final positions are provided on maximising the decarbonisation potential of new build and substantially refurbishing combustion power plants, and ensuring the requirements keep pace with the emergence of new decarbonisation technologies. Plant operators must have credible pathways to decarbonise by ensuring their plant is built in such a way that it can easily convert to either hydrogen-firing or retrofit carbon capture technology, within the plant’s lifetime.

Government will soon lay an affirmative statutory instrument in Parliament to amend the Environmental Permitting (England and Wales) Regulations 2016 (EPR). The requirements will come into effect for environmental permit applications submitted after 28 February 2026. Before this date, the Environment Agency (EA) will consult on and publish further guidance on how plant operators can demonstrate that the requirements have been met.

Summary of legislation

• Remove the 300 MW minimum capacity threshold at which the CCR requirements currently apply. Smaller plants will be able to comply with the requirements in a less burdensome way, especially where standard rules permits are applicable. To be covered in further EA guidance.
• Include both new build and substantially refurbishing combustion power plant in scope and enable existing combustion power plants to voluntarily apply for a DR permit.
• Move the requirements from the planning consent process to environmental permitting, which will be assessed by the EA. The scope of DR has been broadly aligned with the existing scope of environmental permitting for combustion power plants. Therefore, if a new or substantially refurbishing plant requires an environmental permit then it will most likely be required to meet DR requirements.
• Expand the generation technologies in scope of the DR requirements to include biomass, energy from waste (EfW) and combined heat and power plants (CHP). Some exemptions apply. This does not currently include combustion plants that are used solely for the purpose of generating heat.
• No distinction between fossil and biogenic CO₂ emissions will be made.
• Enable combustion power plants to demonstrate DR through conversion to hydrogen firing, as well as power Carbon Capture Usage and Storage (CCUS) retrofit. Four assessments for demonstrating Hydrogen Conversion Readiness (HCR) will be introduced. Blends of hydrogen, ammonia and other defined low carbon fuel and methane will remain in scope of DR requirements.
• Introduce Carbon Capture Readiness routes as part of the Decarbonisation Readiness requirements. For CCS, this will consist of four tests (technical feasibility, space requirement, CO2 transport and storage, and economic feasibility), with similar tests for hydrogen.
• Require a light touch review every two years of plant operators’ DR reports.
• Exemptions for landfill gas, small AD plants, and Small Waste Incinerators (SWIPS) that generate electricity (consistent with the small emitter’s threshold for the UK ETS (<25,000 TCO2epa) will be excluded.
• Hazardous and clinical waste incinerators will not be excluded.
• CO₂  usage is not currently considered but intent to include permanent forms of usage in future.

View the full document here for further information.