We asked the Department whether its business models allow for the government to take a share of any profit a project makes if the programme is successful.37 But the Department could not provide a compelling answer.38 Now that the Department has signed its first two contracts for carbon capture and storage, this will produce an “incredibly better investment” scenario for the private sector in the second tranche, which should encourage the Department to think about, for example, profit shares a...

We asked the Department whether its business models allow for the government to take a share of any profit a project makes if the programme is successful.37 But the Department could not provide a compelling answer.38 Now that the Department has signed its first two contracts for carbon capture and storage, this will produce an “incredibly better investment” scenario for the private sector in the second tranche, which should encourage the Department to think about, for example, profit shares and equity stakes.39 HM Treasury hopes that the government agreeing support for projects in the programme’s Track 1 will provide industry with confidence Type: conclusion | Number: 12 | Response status: not_addressed Government response: 2.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2026 2.5 In achieving this balance, the department notes that the business models do have mechanisms to ‘make sure that taxpayers and consumers will benefit financi