Energy Act 2023

129 Financial assistance U.K.

(1) The Secretary of State may provide financial assistance to any person for the purpose of encouraging, supporting or facilitating—

(a) transportation of carbon dioxide;

(b) storage of carbon dioxide;

(c) carbon dioxide capture facilities which operate (or are to operate) in association with facilities for any activity mentioned in paragraph (a) or (b);

(d) low carbon hydrogen production;

(e) transportation of hydrogen;

(f) storage of hydrogen.

(2) The financial assistance referred to in subsection (1) includes expenditure incurred by the Secretary of State for the purposes of, or in connection with—

(a) the establishment of a revenue support counterparty, a hydrogen levy administrator or an allocation body;

(b) making payments to a revenue support counterparty.

(3) Financial assistance under this section—

(a) may be provided in any form and in particular by way of grants, loans, guarantees or indemnities or by the provision of insurance;

(b) may be provided subject to conditions (which may include conditions about repayment with or without interest or other return);

(c) may be provided pursuant to a contract;

(d) may be provided to an investment fund for onward investment or for administrative costs relating to onward investment;

(e) may be provided by incurring expenditure for the benefit of the person assisted;

(f) may be provided by the acquisition of shares or any other interest in, or securities of, a body corporate;

(g) may be provided by the acquisition of any undertaking or of any assets.

(4) The Secretary of State is not authorised by this section to give financial assistance in the way described in subsection (3)(f) without the consent of the body corporate concerned.

(5) The power to provide financial assistance under this section is in addition to (and does not limit or replace) any other power of a Minister of the Crown to provide financial assistance.

(6) In this section—

• “allocation body” has the same meaning as in Chapter 1 (see section 73(6));

• “greenhouse gas” has the meaning given by section 92(1) of the Climate Change Act 2008;

• “hydrogen levy administrator” has the same meaning as in Chapter 1 (see section 69(6));

• “low carbon hydrogen production” means production of hydrogen by a method which in the opinion of the Secretary of State will contribute to a reduction in emissions of greenhouse gases;

• “revenue support counterparty” has the same meaning as in Chapter 1 (see section 58(6));

• “storage”, in relation to carbon dioxide, means any storage with a view to the permanent containment of carbon dioxide;

• “undertaking” means any trade or business or any other activity providing employment.

Commencement Information

I1 S. 129 in force at Royal Assent, see s. 334(2)(b)