Energy (Oil and Gas) Profits Levy Act 2022 section 2A

Meaning of expenditure on de-carbonisation of upstream petroleum production

Section 2A defines what counts as expenditure on the "de-carbonisation of upstream petroleum production" for the purposes of the enhanced investment allowance under section 2.

• Qualifying expenditure must be incurred in specified circumstances and have a main purpose of reducing greenhouse gas emissions from the company's ring fence trade
• Qualifying circumstances include spending on alternative energy assets, grid connections, reducing flaring or venting, capturing emissions, and monitoring or measuring emissions
• An alternative energy asset is one that generates or stores power wholly or mainly from non-fossil-fuel sources
• Upstream petroleum facilities means any facility used by the company for its oil extraction activities