CCUS Net Zero investment roadmap: Capturing carbon and a global opportunity - GOV.UK
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This was published under the
2022 to 2024 Sunak Conservative government
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This publication is available at https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-net-zero-investment-roadmap/ccus-net-zero-investment-roadmap-capturing-carbon-and-a-global-opportunity
The UK has the potential to be one of the greatest
CO2
storage bases in Europe, with billions of tonnes worth of storage-opening up economic growth and exciting global investment opportunities. Rt Hon Grant Shapps MP
Secretary of State for Department for Energy Security and Net Zero
Carbon capture, usage and storage (
CCUS
) will play a critical role in the transition to net zero by 2050. The UK is well placed to lead in
CCUS
globally with:
A worldwide reputation as an international centre of engineering excellence
Extensive experience from the oil, gas, and petrochemicals sector
Substantial CO2storage potential and industrial infrastructure
The UK is a first mover; we are aiming to support the establishment of 2
CCUS
clusters by the mid-2020s and a further 2 by 2030,through which we aim to capture 20-30
MtCO2
per year. 78Gt
Potential CO2 storage capacity
1st
in Europe for value of start–up & scale–up ecosystem
Potential
£4-5bn
in GVA from UK CCUS exports by 2050
2nd
in Europe for FDI attractiveness
£22bn
committed to raise R&D to 2.4% of GDP
1st
Ranked best global green finance centre
1st
in G20 as a globally connected economy
Engineering employs
5.6m
people
5th
Largest economy
Open, liberal economy
Stable regulatory regime with independent legal system
Globally competitive and transparent tax regime
Generous
R&D
and patent tax relief
The UK-EU Trade and Cooperation Agreement allows zero tariff market access with the EU
Flexible labour market
World class professional services sector supporting businesses with insurance and finance
A sector with ambitious targets and major opportunities for growth. £20bn
for the early deployment of CCUS
Up to
£210m
Industrial Strategy Challenge Fund
Up to
£115m
in new R&D spending to develop CCUS & Carbon Removal techs in the UK
Up to
£8bn
of potential turnover captured by the UK from global turnover of the CCUS industry in 2050
Up to
£18bn
private financial capacity available from UK Infrastructure Bank for sectors including H2/CCUS
UK aims to capture
20-30 MtCO2
per year by 2030
Opportunities in an advanced and growing sector:
Global player: the UK is in the top 5 countries globally for
CCUS
readiness
CCUS
clusters: The government is committed to deploying 2
CCUS
clusters by the mid-2020s and a further 2 by 2030 through which we aim to capture 20-30
MtCO2
per year
Regulatory environment: Bespoke business models
Could support 50,000 jobs in 2030
Source: Based on Bentham et al. (2014)
Data from chart:
Store type | Storage capacity (
Gt
)
- | -:
Sandstone saline aquifers | 60
Chalk saline aquifers | 8
Gas fields | 5
Oil fields | 3
Unites under 20 Mt | 2
The UK can lead the world in the provision of
CO2
transport and storage services with:
An estimated 78 billion tonnes of theoretical
CO2
storage capacity in the UK continental shelf
One of the largest potential
CO2
storage capacities in Europe
Source:
2019 data. Annual emissions. Does not capture non-ETS emissions in a cluster. Data from map:
Location | Cluster | Emissions (
MtCO2e
)
- | - | -:
Humberside | Track-1 clusters | 8.8
Merseyside | Track-1 clusters | 5.2
Teeside | Track-1 clusters | 3.8
Grangemouth | Reserve Track-1 cluster | 4.2
South Wales | Other industrial clusters | 9.2
Southampton | Other industrial clusters | 3.3
Black County | Other industrial clusters | 0.5
Industrial
CCUS
clusters can be the starting point for a new carbon capture industry with a sizeable export potential
The cluster sequencing process maps a logical path for
CCUS
deployment in the UK. Clusters sequenced for the mid-2020s are ‘Track-1’ and those by 2030 are ‘Track-2’
This approach will help drive investment across the sector. We remain committed to helping all industrial clusters to decarbonise as we work to reach net zero emissions by 2050. The
CCUS
sector could support up to 50,000 jobs in the UK in 2030. Data from map:
Cluster | Project | Type
- | - | -
HyNet | Hanson Padeswood Cement Works Carbon Capture and Storage Project |
ICC
HyNet | Buxton Lime Net Zero |
ICC
HyNet | Viridor Runcorn Industrial
CCS
| Waste
ICC
HyNet | Protos Energy Recovery Facility | Waste
ICC
HyNet | HyNet Hydrogen Production Plant (
HPP1
) | Hydrogen
East Coast Cluster | Net Zero Teesside Power | Power
East Coast Cluster | bpH2Teesside | Hydrogen
East Coast Cluster | Teesside Hydrogen
CO2
Capture |
ICC
The Track-1 Project Negotiation List includes 8 projects selected through the cluster sequencing process to progress to negotiations to form the start of the
CCUS
clusters, based in HyNet and the East Coast Cluster
This is a significant step towards the UK’s first operational
CCUS
networks, underlining the government’s commitment to delivering our Net Zero ambitions
The government will launch a process,later in 2023, to enablefurther expansion of Track-1clustersbeyond the initial Track-1 deployment, identifying and selecting projects within HyNet and East Coast Cluster–including the Humber –and their associated storesas they become viable, to be operational by 2030. The expansion of the Track-1 clusters is expected to include greater utilisation of the initial HyNet storage capacity and the development of the Bunter Closure stores for the East Coast Cluster to 2030, subject to further assessment and value for money.
Government will work to identify projects that could be potential alternatives to any of the initial Track-1 projects, if any are unable to agree contracts within the criteria and timelines required. The government will continuously monitor the value for money offered by the Track-1 shortlist, to ensure only the best and most cost-effective capture projects reach
FID
. Subject to criteria under development, the government is minded to enable engineered greenhouse gas removals (
GGRs
) to apply to Track-1 expansion and Track-2. Government has launched Track-2 of the
CCUS
cluster sequencing process to establish 2 further
CCUS
clusters. At this stage, government is seeking to identify 2 Transport and Storage (
T&S
) systems that can deliver government’s objectives for Track 2 and considers the Acorn and Viking
T&S
systems as able to meet the Track-2 eligibility criteria, and best placed to deliver on the objectives for Track-2, subject to due diligence and value for money assessments. Other
T&S
systems that are able to meet the eligibility criteria have the opportunity to express an interest in being considered for Track-2. The deadline for submitting an expression of interest (
EoI
) is 28 April 2023. We intend to provide an update in summer 2023, following closure of the
EoI
process. Industrial Carbon Capture (
ICC
) Business Models (including the Waste
ICC
Business Model)
are designed to incentivise the deployment of carbon capture technology for industrial users who often have no viable alternatives available to achieve deep decarbonisation. The
Dispatchable Power Agreement (
DPA
)
will incentivise the mobilisation of private finance to enable power
CCUS
to play a valuable mid-merit role in our generation mix. For
Power Bioenergy
CCS
(
BECCS
)
we are designing a firstof a kind Power
BECCS
business model to incentivise private finance enabled projects that will provide negative emissions and firm low carbon electricity. Greenhouse Gas Removals (
GGRs
) Business Model
is being developed to attract private investment in a portfolio of engineered GGR technologies including Direct Air Carbon Capture and Storage (
DACCS
). Transport and Storage (
T&S
) Regulatory Investment (
TRI
) Model
is based on the successful regulated asset base model. It has 3 key objectives: to attract investment in the
T&S
network to establish a new
CCUS
sector; enable low-cost decarbonisation in multiple sectors; and develop a market for carbon capture –a long-term vision. The
Hydrogen Production Business Model
will provide revenue support to producers to overcome the operating cost gap between low carbon hydrogen and high carbon counterfactual fuels. £20 billion investment in the early deployment of
CCUS
, including the
£1 billion
CCUS
Infrastructure Fund
to support the capital costs of strategic
CCUS
infrastructure,
T&S
networks, and
ICC
projects. Industrial Decarbonisation and Hydrogen Revenue Support
scheme to fund business models for low carbon hydrogen production and industrial carbon capture that give investors the long-term revenue certainty they require. The
Energy Bill
establishes the legislative framework, subject to Royal Assent, for the economic regulation of
CO2
Transport and Storage, Industrial Carbon Capture, and low carbon hydrogen business models. The framework is designed to attract private finance and remove market barriers to investment, providing long-term revenue certainty needed to establish and scale up these industries across the UK. Powering Up Britain
builds on our ambitions in the British Energy Security Strategy and the Net Zero Strategy. The package sets out how the government will enhance our country’s energy security, seize the economic opportunities of the transition, and deliver on our net zero commitments. The
Green Finance Strategy
will strengthen the UK’s leading position at the forefront of the global green finance market and provide the financing needed for our energy security, net zero, and environmental targets.The Strategy sets a framework for the UK’s ambition to become the world’s first Net Zero-aligned Financial Centre. CCUS
Supply Chain Strategy
is being developed by industry through the
CCUS
Council. The strategy will act as a supply chain guidance/charter document for Track-1 and successive
CCUS
clusters. Developers will sign up to a voluntary industry-wide process to share best practice and publish and track progress against supply chain ambitions. Increasing visibility of
CCUS
across the supply chain
after government worked with industry to organise a successful ‘Meet the Specifier’ event for the Transport and Storage portion of a
CCUS
project in 2022. We will organise future events around the country to continue raising awareness of procurement opportunities and ensure the supply chain is ready to deliver our ambitious deployment programme. Collaborating to deliver a strong,industrialised UK
CCUS
supply chain
by government working with industry to maximise the economic opportunity presented by
CCUS
, identify skills requirements, attract investment,and facilitate new export opportunities through UK Export Finance, the Department for Business and Trade, and the Foreign, Commonwealth & Development Office overseas networks. We are supporting
Institutes of Technology
across England with £120 million for institutes specialising in delivering higher technical education and developing green skills. supports eligible adults to gain high value Level 3 (A level-equivalent) qualifications, many of which can help them to transition to or specialise in roles in the green economy. We are reforming the skills system through
Local Skills Improvement Plans
. We have instituted a
Lifetime Skills Guarantee
supporting workers to gain the skills they need to transition to the green economy, including through targeted support for retraining. The
Green Jobs Delivery Group
has been established as the central forum through which government and industry are working together to accelerate the supply of a skilled workforce for our low carbon sectors. The
North Sea Transition Deal
has developed an integrated People and Skills Plan to ensure the highly skilled oil and gas workforce with skills transferability to adjacent energy sectors can be deployed to develop our
CCUS
industry. Between 2004-2021 we provided
. The
Industrial Strategy Challenge Fund
provides up to £210 million through the
Industrial Decarbonisation Challenge
, including £170 million, matched by £261 million from industry,to support low-carbon technology development in UK industrial clusters.
Industrial Decarbonisation Research and Innovation Centre
has been established. Creating a coherent pathway to storage permitting
Providing timelines for non-pipeline transport (
NPT
) of
CO2
Working with industry and clusters located away from pipeline transport solutions to
develop an
NPT
strategy
. Continuing to engage with industry and international counterparts
on their
NPT
position to learn from the approach of others and understand
NPT
requirements. Providing certainty on
CCUS
deployment pipeline
We have now
published the Track-1 Project Negotiation List
which includes 8 projects which we have selected through the Cluster Sequencing Process to progress to negotiations to form the first 2
CCUS
clusters, based in HyNet and the East Coast Cluster. We have
launched Track-2 of the
CCUS
cluster sequencing process
to establish 2 further
CCUS
clusters and we will launch a process within 2023 to enable further expansion of Track-1 clusters. We will
set out a vision for the UK
CCUS
sector
, setting out how
CCUS
will support our net zero ambitions to raise confidence and improve visibility for investors. Ensuring workforce availability to deliver
CCUS
The
Green Jobs Delivery Group
acts to upskill and train the green workforce of the future. Integrated People and Skills Strategy
launched to highlight the benefits of a just and managed energy transition for the workforce, the industry, governments and communities. Internationally competitive
The UK’s bespoke cluster sequencing process will be the starting point for a
stable, regulated and investable
CCUS
industry
. The
Energy Bill
will, subject to Royal Assent, provide the legislative framework for business models for
CCUS
, providing investors with the long-term revenue certainty to establish and scale up the
CCUS
industry across the UK. Critical activities and milestones on a path to developing the UK
CCUS
sector. 2021 to 2022:
Track-1 Cluster sequencing process [Government activity]
2021 to 2024:
Track-1 Cluster
FEED
[Industry activity]
2022 to 2030:
Track-2 Second cluster sequencing development, launch, negotiations, and construction [Joint government & industry activity]
2023 to 2025:
Track-1 Negotiations with transport and storage companies and capture projects [Joint government & industry activity]
2023 to 2030:
Track-1 Cluster consents, construction, commissioning [Industry activity]
Track-1 Expansion development, launch, negotiations, and construction [Joint government & industry activity]
Launch Phase-2 of the cluster sequencing process
Track-1 Project Negotiation List announced
Track-1 Cluster consents, construction, commissioning Launch Track-2
Up to
1GW
of
CCUS
-enabled hydrogen in construction or operation
2 clusters (including one power
CCUS
plant) by mid 2020s
Capture 20-30
MtCO2
per annum by 2030 including 6
MtCO2
from industrial
CCS
[Government target]
4
CCUS
clusters by 2030
Deploy at least 5MtCO2 per annum of engineered greenhouse gas removals (
GGRs
) by 2030
Capture and store 9MtCO2 from industrial
CCS
by 2035
Confirmation of £1 billion
CCUS
Infrastructure Fund (
CIF
)
Launch £20 million
CCUS
Innovation 2.0 programme
Publication of UK Hydrogen Strategy
Launch £240 million Net Zero Hydrogen Fund (
NZHF
)
Publication of
T&S
,
ICC
, and power business model updates
Announce winners of £60 million
DACCS
and other
GGRs
innovation programme
Launch £140 million Industrial Decarbonisation& Hydrogen Revenue Support (
IDHRS
) scheme
Publication of hydrogen production business model Heads of Terms
£20 billion announced for early deployment of
CCUS
GGR and power
BECCS
Business Model Consultation Government Responses
Announce Call 2 winners of£20 million
CCUS
Innovation 2.0 programme
Up to
10GW
of hydrogen production, half of which may be from
CCUS
[Government target]
Deliver a fully decarbonised power system by 2035 [Government target]
Legally binding target equivalentof 78% emissions reductions by 2035 [Government target]
The UK’s commitment to support global investment is unparalleled. The Department for Business and Trade (
DBT
)
DBT
supports businesses to invest, grow and export, creating jobs and opportunities across the country. Office for Investment (
OfI
)
OfI
is a joint
DBT
and No.10 team that provides a single front door to government for high-value and high-impact investors, facilitating with access and insights through a concierge offer. The
OfI
works across departments to drive increased investment in line with the government’s Net Zero agenda. UK Export Finance (
UKEF
)
The UK’s export credit agency, has enhanced its support to attract investment into supply chains and building export capability. UK infrastructure Bank (
UKIB
)
The
UKIB
can invest across the capital structure (senior debt, mezzanine, first loss, debt guarantees and equity) to help crowd private finance into net zero infrastructure. Support moving a tech business
The Global Entrepreneur Programme (
GEP
) helps high-growth overseas companies relocate to the UK. Economic development agencies
There are a number of organisations with significant experience in delivering public sector investment packages. For example, Scottish National Investment Bank is a mission-led development bank that provides patient capital to build a stronger, fairer, more sustainable Scotland. Helpful guides
Guidance on expanding to the UK, including visas and migration; tax and incentives; regulatory and business planning; staff recruitment, retention and training; and immigration. Links to key organisations
In addition to centres of excellence and industry clusters, we will facilitate introductions to universities, Local Enterprise Partnerships (
LEPs
) and Enterprise Zones. Find a UK specialist
The UK Investment Support Directory allows you to find companies with skills and experience in helping overseas businesses set up or expand in the UK. 1. (2016)
2. 3. (2019)
4. (2022)
5. (2023)
6. (2021)
7. (2022)
8. (2022)
9. (2022)
10. Official statistics converted at market exchange rates as a source
11. (2023)
12. (2023)
13. 14. Analysis based on
(2019)
15. (2022)
16. (2023)
17. (2019)
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