A new industry group has been formed to advise government on the development of carbon capture, usage and storage (CCUS).

The full list of members has not been revealed, but does include Cadent, BP and Drax.

The body will provide evidence-backed recommendations on the cost structures, risk-sharing arrangements and market mechanisms that will necessary to meet the goal of deploying the first CCUS project in the UK by the mid-2020s.

The announcement was welcomed by the energy minister Claire Perry, who said: “The UK will continue to thrive as a world leader in clean growth technologies like carbon capture through our ambitious modern industrial strategy.

“The new advisory group will help ensure that we take full advantage of the potential of this emerging industry, with a view to deploying the first CCUS facility in the UK from the mid-2020s.”

The chair of the group, Paul Davies, described its creation as a “great step forward”, allowing the public and private sectors to “work together to develop a detailed commercial framework to underpin CCUS delivery in the UK”.

Luke Warren, the chief executive of the Carbon Capture and Storage Association (CCSA) said 2019 must be a “year of action” if the technology is to be rolled out at scale in the 2030s.

“In the year when the government will consider how to achieve net zero emissions, all the evidence points to CCUS being essential if we are to have any hope of reaching the goals of the Paris agreement,” he explained.

“The establishment of this new advisory group shows that government and industry are prepared to work together to make this happen, and the CCSA looks forward to supporting the government’s ambition of becoming a world leader in this crucial technology.”

Last week, a new alliance of business leaders, politicians and academics revealed plans to bid for a share of £170 million of government funding to support the development of the UK’s first zero-carbon industrial hub.

The North West Cluster said its members are willing invest up to £500 million to decarbonise the industrial facilities in an area between Manchester and Liverpool.