Subsidy not needed
There's no up front money needed here.
BP wanted to try this, stripping the H out of natural gas, burning the H at Peterhead and pumping the CO2 down old oil fields to bring up the last of the oil.
They didn't need subsidy....but what they did ask for was a reduction in the royalties paid to the government for the last barrels of oil that were pumped up.
Quite rightly, the government takes a large chunk of the value of North Sea oil. BP's argument was, well, yes, that's fine. But if we don't put the CO2 down there then the oil won't come up at all and so the Treasury will get nothing. Let us have a lower royalty rate as we work out how to do this CO2 burial stuff and you'll get something at least.
One Geo. Brown decided against this. So, the BP scheme isn't happening and the Treasury is getting nothing from the oil remaining under the North Sea.
Offer reduced royalty rates on the oil so forced up and the oil companies will be falling over themselves to do it.