Phase 2 Tranche C Draft Determination: Liverpool Bay CCS Ltd
This consultation is open for responses
Closes 15 Jun 2026 (25 days remaining)
Summary
Ofgem proposes to allow Liverpool Bay CCS Ltd to recover costs from a Change in Scope Re-opener under its CCS transport and storage economic licence, covering the ongoing Runcorn TCPA planning application and the licensee's participation in the Cubico Frodsham Solar Project DCO examination. The submission follows DESNZ's deprioritisation of Viridor under the HyNet Track-1 Expansion. Ofgem's minded-to position adjusts the Approved Project Development Plan, Financial Settlement Document and project-specific licence schedule rather than changing the regulated revenue model itself.
Why it matters
This is a within-RAB adjustment for a single subsidised CCS pipeline, not a market mechanism: scope and consenting costs are added to the regulated allowance and recovered from network users and ultimately consumers, with no party facing a price for the schedule slippage Viridor's deprioritisation caused. The re-opener structure means the licensee bears little of the cost-overrun risk it would face in a merchant project.
Options on the table
Approve the Change in Scope modifications (minded-to)
Ofgem's proposed position is to accept the modifications in Liverpool Bay CCS's Phase 2 Tranche C submission, allowing the costs of the Runcorn TCPA application and Cubico Frodsham Solar DCO participation into the regulated allowance and amending the Approved Project Development Plan, Financial Settlement Document and project-specific licence schedule accordingly. This passes the consenting and scope-change costs through to network users rather than leaving them with the licensee.
Questions being asked
Change in Scope cost recovery
- Do you agree with Ofgem's minded-to position on the proposed modifications in Liverpool Bay CCS's Phase 2 Tranche C Change in Scope Submission?
- Are the costs associated with the Runcorn TCPA Application and the Cubico Frodsham Solar DCO examination appropriate for recovery through the Change in Scope Re-opener?
Key facts
- •Publication date: 15 May 2026; closing date: 15 June 2026
- •Phase 2 Tranche C Change in Scope Re-opener for Liverpool Bay CCS Ltd (HyNet)
- •Costs in scope: ongoing Runcorn TCPA Application and participation in the Cubico Frodsham Solar Project DCO examination
- •Driven by deprioritisation of Viridor under DESNZ Track-1 Expansion / HyNet expansion negotiation list
- •Updated documents: Approved Project Development Plan, Technical Details Document, Financial Settlement Document, and Licence Schedule 10 project-specific documents
- •Responses to ccus@ofgem.gov.uk by 15 June 2026
Timeline
Areas affected
Related programmes
Memo
Phase 2 Tranche C Draft Determination: Liverpool Bay CCS Ltd | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Phase 2 Tranche C Draft Determination: Liverpool Bay CCS Ltd Publication type: Consultation Publication date: 15 May 2026 Closing date: 15 June 2026 Status: Open Topic: Carbon capture and storage Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Our proposed decision on Liverpool Bay CCS Limited’s application for a Change in Scope Re-opener. Consultation description Ofgem is seeking views on our minded to position on the proposed modifications within Liverpool Bay CCS’s Phase 2 Tranche C Change in Scope Submission, primarily regarding the costs associated with the ongoing Runcorn TCPA Application and the Licensee’s participation in the Cubico Frodsham Solar Project Development Consent Order (the ‘Cubico DCO’) examination. This submission follows the deprioritisation of Viridor in accordance with Department for Energy Security and Net Zero’s (‘DESNZ’) Track-1 Expansion announcement: HyNet expansion: project negotiation list | GOV.UK Who should respond We welcome responses from both Licensees, current and future network users, and anyone else interested in the topic, including members of the public. How to respond Submit your responses by 15 June 2026 by emailing ccus@ofgem.gov.uk , or via post to Saqib Wani, Office of Gas and Electricity Markets, 10 South Colonnade, Canary Wharf, London, E14 4PU. Consultation documents Phase 2 Tranche C Draft Determination Liverpool Bay CCS Ltd: consultation [PDF, 240.63KB] Notice of consultation for Phase 2 Tranche C Draft Determination Liverpool Bay CCS Ltd [PDF, 157.48KB] Appendix 1: Updated Approved Project Development Plan [PDF, 797.74KB] Appendix 2: Updated Technical Details Document [PDF, 238.80KB] Appendix 3: Updated Financial Settlement Document [PDF, 273.16KB] Appendix 4: Updated Licence (amendment to Schedule 10 project specific documents only) [PDF, 0.98MB] Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close Notify me Would you like to be kept up to date with Phase 2 Tranche C Draft Determination: Liverpool Bay CCS Ltd ? subscribe to notifications: Email Submit Close