Carbon capture, usage and storage (CCUS): business models
Source: gov.uk (2025-11-21)

Updates on the proposed commercial frameworks for transport and storage, power, and industrial carbon capture business models.

These documents provide details of the proposed carbon capture, usage and storage (CCUS) commercial frameworks for business models that apply to:
- transport and storage
- power
- industrial carbon capture
November 2025 updates
- ICC business model update (November 2025)
- ICC: Front End Agreement (November 2025)
- ICC: Front End Agreement - comparison (November 2025)
- ICC: standard terms and conditions (November 2025)
- ICC: standard terms and conditions - comparison (November 2025)
- Waste ICC: Front End Agreement (November 2025)
- Waste ICC: Front End Agreement - comparison (November 2025)
- Waste ICC: standard terms and conditions (November 2025)
- Waste ICC: standard terms and conditions - comparison (November 2025)
January 2025 updates
- we published the initial template full form CCS Network Code, developed in partnership with industry, expert advisors, and DESNZ
- Code Implementation Date (as such term is defined in the CCS Network Code) is 10 December 2024
- the live version of the CCS Network Code is now maintained by the carbon dioxide Transport and Storage operator(s) who have acceded to it. It will be published on the forthcoming CCS Network Code website
- we published the government response to a consultation on the CCS Network Code Heads of Terms (https://www.gov.uk/government/consultations/carbon-capture-and-storage-ccs-network-code-updated-heads-of-terms) on 13 January 2025
- we published a comparison between the CCS Network Code Heads of Terms and the Network Code
April 2024 update

The April 2024 update sets out the government’s updated proposals for the ICC and Waste ICC business models for projects participating in the CCUS Cluster Sequencing Track-1 expansion and Track-2 processes.

December 2023 update

The December 2023 update sets out the government’s updated proposals for the business model for transport and storage.

October 2023 update
- ICC business model: summary (October 2023)
- ICC: standard terms and conditions (October 2023)
- ICC: Front End Agreement (October 2023)
- ICC: standard terms and conditions - comparison (October 2023)
- ICC: Front End Agreement - comparison (October 2023)
- Waste ICC: standard terms and conditions (October 2023)
- Waste ICC: Front End Agreement (October 2023)
June 2023 update

The June 2023 update sets out the government’s updated proposals for the business model for transport and storage (TRI model).

December 2022 updates

Industrial Carbon Capture
- the December 2022 update outlines the key design aspects of the Industrial Carbon Capture (ICC) business models (including for the waste management sector)
- this business model update is being published alongside a government response to the consultation on the ICC business models (https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-industrial-carbon-capture-business-model), the ICC Contract (comprising front end agreement and standard terms and conditions), the Greenhouse Gas Removal Credits Annex, ICC Form of Supply Chain Report Spreadsheet, the Waste ICC Contract’s Summary Table, the Waste ICC Contract’s Biogenic CEMS rider, and the CCS Infrastructure Fund (CIF) Grant Funding Agreement offer letter and terms and conditions
CCS Network Code
- CCS Network Code Head of Terms explanatory note - December 2022
- we published (Annex) Updated Indicative Heads of Terms to the CCS
- we published CCS Network Code Indicative Heads of Terms (HoTs) highlighting changes with the previous version of the HoTs (published in June).
November 2022 updates
- Power CCUS business model - a summary of the full dispatchable power agreement (DPA) business model
- we published a full DPA contract consisting of a front end agreement, DPA terms and conditions and a supply chain Part B template spreadsheet: November 2022
- we published a government response to the DPA consultation (https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-dispatchable-power-agreement-business-model) that ran between 12 April 2022 and 10 June 2022
July 2022 updates
- The July 2022 update presents key adaptations to the industrial carbon capture (ICC) business model for carbon capture, use, and storage (CCUS) projects in the waste management sector
- some information contained in the July 2022 update may also apply to emitters in other industrial sectors (‘generic’ ICC Contract holders)
- alongside this July 2022 update on the ICC business model for CCUS projects in the management waste sector, we have also published the draft Waste ICC contractual riders
- we will continue to engage with waste management stakeholders upon the publication of this update and take into account these views as we develop the final Waste ICC Contract, including through Waste Expert Groups held over the summer. If you wish to be involved in any future stakeholder events in connection with the Waste ICC business model, please contact us via email at xxx@xxx.xx (mailto:xxx@xxx.xx)
April 2022 updates
- Power CCUS business model - a summary of the full draft dispatchable power agreement (DPA) business model, including an annex on the proposed gain share mechanism, plus consultation questions
- alongside the DPA summary and consultation (https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-dispatchable-power-agreement-business-model), we have published a full draft DPA contract consisting of a front end agreement, terms and conditions and gain share schedule
- industrial carbon capture (ICC) business model - the April 2022 update on the proposed ICC business model covers updates on the commercial framework including the payment mechanism (asymmetric payments, Transport and Storage (T&S) fees, CCS projects that also include CCU, and an update on free allowances) and risk allocation, mitigations relating to the risk of the excessive carbon intensity of industrial products, opex reopener, extension provisions, and adaptations for Combined Heat and Power (CHP) projects. It includes an update on the legal contractual framework, including termination, Operational Conditions Precedent (OCPs), the Milestone Requirement, Qualifying Changes in Law, metering and reporting requirements. We also outline the changes to the model that are being considered for waste management CCS projects. Finally, this update includes information on the proposed Cluster Sequencing Process Track-1 negotiation approach and next steps
- alongside the ICC business model April 2022 update, we have published a draft ICC contract for initial projects consisting of Draft Terms and Conditions and a Front-End Agreement
- in addition, we have published a summary of the ICC business model and including a consultation on the proposed business model (https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-industrial-carbon-capture-business-model)
January 2022 update

This update builds on previous Transport and Storage (T&S) business model publications and provides further details on the T&S Regulatory Investment (TRI) model. The January 2022 update also includes an indicative Heads of Terms document.

November 2021 update

The November 2021 update on the proposed industrial carbon capture(ICC) business model and the proposed dispatchable power agreement (DPA) covers updates on CCUS supply chains and the eligibility of waste management CCUS projects to apply for the ICC business model.

October 2021 updates
- Power CCUS business model – the update on the proposed dispatchable power agreement (DPA) business model includes further updates to the DPA payment mechanism and legal and contractual framework for power CCUS
- alongside the DPA business model October 2021 update, we have published an updated set of provisional Heads of Terms representing the policy developments included in the May 2021 and October 2021 updates
- Industrial carbon capture (ICC) business model - the October 2021 update on the proposed ICC business model covers updates on eligibility criteria, capital grant support, and the commercial and contractual framework, including further elements of the payment structure, risk allocation and ‘Capture as a Service’ (a delivery model in which companies could provide carbon capture as a ‘service’ to industrial facilities)
- alongside the ICC business model October 2021 update, we have also published the provisional Heads of Terms and Front-End Agreement for the ICC contract
Please read these documents in conjunction with the December 2020 and May 2021 updates.

For further information on CCUS Business Models see the related consultation Carbon capture, usage and storage (CCUS): business models (https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-business-models).

The business models focus on deployment development as set out in the Energy ten point plan (https://www.gov.uk/government/publications/the-ten-point-plan-for-a-green-industrial-revolution/title) and the Energy white paper (https://www.gov.uk/government/publications/energy-white-paper-powering-our-net-zero-future).

July 2021

Update on Phase-1 eligible clusters and Phase-2 timeline (https://www.gov.uk/government/publications/cluster-sequencing-for-carbon-capture-usage-and-storage-ccus-deployment-phase-1-expressions-of-interest/update-on-phase-1-eligible-clusters-and-phase-2-timeline)

May 2021 update
- Cluster Sequencing for Carbon Capture Usage and Storage Deployment: Phase 1 (https://www.gov.uk/government/publications/cluster-sequencing-for-carbon-capture-usage-and-storage-ccus-deployment-phase-1-expressions-of-interest)
- an update on the CCS Infrastructure Fund (CIF) (https://www.gov.uk/government/publications/design-of-the-carbon-capture-and-storage-ccs-infrastructure-fund)
- CCUS Supply Chain Roadmap (https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-supply-chains-a-roadmap-to-maximise-the-uks-potential)