Carbon Capture and Utilisation Demonstration (CCUD) innovation programme – Funding Opportunity

BEIS has allocated up to £20 million to design and construct carbon capture and utilisation (CCU) demonstration projects.


This programme is designed to encourage industrial sites to capture carbon dioxide which could then be used in industrial applications. It will provide a learning opportunity for the development of capture technologies at an intermediate scale, thus reducing costs and risks.

Overall programme aims

  • to demonstrate carbon capture and utilisation at a number of key industrial sites in the UK
  • to demonstrate and accelerate cost reductions of about 20-45% in carbon capture technology, or about £10-20/MWh
  • to encourage a project pipeline of follow-on CCU projects that will help less mature, but more novel technology to be demonstrated at scale
  • to improve understanding of the cost and performance of carbon capture technology
  • to de-risk the capture technology

Organisations of any size are eligible to apply for funding. Projects may involve working with international partners, but the work funded must be conducted predominantly in the UK.

Phase 3: Funding for construction and demonstration

Phase 3 offers £14 million grant funding for a number of construction and demonstration projects. The projects will provide:

  • learning opportunities about the best way to configure plants
  • crucial operational data and experience on performance and degradation of the plants

This call is divided into 2 stages, 3A and 3B:

Stage 3B (2019)

  • competition opens on 31 July 2019 and closes 30 September 2019.
  • for applicants that undertook the FEED Study, either in collaboration with government or by themselves

Stage 3A (2018)

  • competition now closed
  • for applicants that did not participate in the FEED Study (Phase 2)
Project timescales
  • funding is for projects of up to 24 months
  • projects must finish before 31 March 2021

Phase 2: Front End Engineering Design (FEED) Studies

The Phase 2 Call for Front End Engineering Design (FEED) Studies provides £5 million grant funding for up to 5 FEED studies.

The studies will produce cost estimates for the construction and operation of demonstrating CCU at the host site. The cost estimates are anticipated to produce cost accuracy of ±15% to allow BEIS and the developer to make a final investment decision.

Project timescales

  • funding is for projects of 6 to 9 months
  • projects must finish before November 2019

BEIS will fund project proposals that meet the definition of Feasibility Study. Grants of up to £1 million will be considered under Article 25.

Phase 1

Phase 1 focused on an initial scoping study for an engineering supplier to work on BEIS’ behalf with potential host sites, carbon dioxide users and technology suppliers to produce site-specific cost estimates for deploying CCU at UK industrial sites.

Wood.Plc successfully bid for Phase 1, and produced a Phase 1 Final Study report available on the CCUD Research Reports page.