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DESNZ publishes draft GGR Contract and Grant Funding Agreement: CfD-style revenue support, UK ETS integration, Energy Act 2023 powers, interplay with Power BECCS, HyNet T1x negotiations and next steps

Published on: 07 October 2025

Published by a LexisNexis Energy expert
Legal News
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Article summary

GGR Business Model and related policy

On 27 August 2025, DESNZ released a suite of documents setting out its proposed GGR Business Model and associated policy. The package includes:

  • GGR Business Model Summary
  • Draft GGR Front End Agreement
  • Draft GGR Standard Terms and Conditions, which together constitute the ‘GGR Contract’
  • Draft GGR Grant Offer Letter
  • Draft GGR Grant Funding Agreement Terms and Conditions

The GGR Grant Funding Agreement Terms and Conditions are intended to be incorporated as a schedule to the final version of the GGR Grant Offer Letter. The GGR Grant Offer Letter, along with its schedules (including the GGR Grant Funding Agreement Terms and Conditions), is referred to as the ‘Grant Funding Agreement’. The GGR Business Model aims to stimulate private capital in GGR technologies in the UK, with particular emphasis on engineered removals of greenhouse gases (for more on ‘engineered’ removals, see the section: ‘Background: What is Greenhouse Gas Removals (GGR)?’ below)...

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