- The UK plans to establish a competitive carbon capture market by 2035, supported by a £20 billion investment.
- The initiative aims to add £5 billion to the economy annually by 2050 and support 50,000 jobs by 2030.
- The UK can store up to 78 billion tonnes of CO2, with a target of 20-30 million tonnes per year by 2030.
- A competitive allocation process for carbon capture projects will start in 2027, with non-pipeline transport options available from 2025.
Overview
The UK government has unveiled the CCUS Vision, a plan to create a competitive market for Carbon Capture, Usage, and Storage (CCUS) by 2035. This initiative is backed by a £20 billion investment and aims to boost the economy by £5 billion annually by 2050.
Economic and Environmental Impact
The CCUS Vision is expected to support 50,000 jobs by 2030 and aims to store 20-30 million tonnes of CO2 per year by the same year. The UK’s unique geology offers the potential to store up to 78 billion tonnes of CO2, primarily under the North Sea.
Implementation Timeline
The plan includes a competitive allocation process for carbon capture projects starting in 2027. From 2025, projects that cannot transport CO2 by pipeline will be able to use alternative methods such as ship, road, and rail. The government has also announced the establishment of four carbon capture clusters across the UK.
Strategic Advantages
The UK’s geology, skills, and infrastructure provide a strategic advantage in developing CCUS technologies. The initiative aims to transition from government-backed early projects to a competitive market, enabling UK companies to build carbon capture facilities and sell their services globally.
Recent Developments
Significant progress has been made in delivering carbon capture clusters in the UK’s industrial heartlands. Initial commercial terms have been agreed with the Northern Endurance Partnership around Teesside and the Humber, paving the way for cluster expansion from 2024.
