The UK Government has unveiled its plans to make the country a global market for carbon capture, usage and storage (CCUS), adding an estimated GBP5bn (US$6.3bn) to the economy by 2050. The plan – named the CCUS Vision – sets out how the UK will transition from early projects backed by government support to becoming a competitive market in this area by 2035, meaning UK companies will compete to build carbon capture facilities and sell their services to the world.
The UK holds a strategic advantage compared to other countries thanks to its unique geology, skills and infrastructure as an island nation, says the government. It also offers enough space under the North Sea for up to 78bnt of CO2. This is the latest step to develop CCUS technologies, which aim to store 20-30Mt of CO2 per year by 2030 and support 50,000 jobs by 2030, backed by up to GBP20bn of investment.
The plan includes measures such as moving to a competitive allocation process for carbon capture projects from 2027 to speed up the building of the UK’s CCUS sector, creating the conditions for projects that cannot transport CO2 by pipeline to enter the market from 2025 onwards, using other forms of transport such as ship, road and rail, and establishing a working group led by industry to identify and adopt solutions to reduce the cost of capturing CO2.
Commenting on the plan, Lord Callahan, UK energy efficiency and green finance minister, said, “We need pragmatic answers to the carbon challenge, and with our infrastructure, skills and geology, the UK is in pole position to take advantage of game-changing carbon capture and storage technology. Today we’re publishing a blueprint to deliver a world-leading UK carbon capture industry, so that we have a competitive market in this exciting new technology by the middle of the next decade. Backed by an unprecedented GBP20bn investment, this is also a pivotal milestone in our journey to net zero that will drive economic growth, unlock investment and create tens of thousands of jobs in our industrial heartlands.”
