Competitive UK carbon capture, usage and storage market by 2035

The Energy Secretary has unveiled a strategy to transform the UK into a global market for Carbon Capture, Usage and Storage (CCUS) by 2035. UK companies will compete to build carbon capture facilities and sell their services to the world with an estimated increase in the economy by £5 billion a year up until 2050. 

Carbon capture and storage is a key part of the UK’s plan to achieve net zero emissions by 2050, most importantly, as a solution to enable emissions reductions from emissions-intensive and difficult to decarbonize industries, such as steel, cement and chemicals.

Energy Security Secretary Claire Coutinho believes the UK’s "geology, skills and infrastructure" puts it in a unique position to lead the way on carbon capture technologies, so it will be made one of the biggest funding investments in Europe on carbon capture and will "cut emissions from our atmosphere, while unlocking investment, creating tens of thousands of jobs and growing the UK economy". There will be a UK budget of £20 billion to support the early development of CCUS technologies.

The new strategy will develop the CCUS market in the UK in 3 stages:

• “Market Creation” through 2030, requiring high levels of government support while establishing 4 storage clusters, supporting the initial CCUS deployments across sectors, and developing carbon transport capacity;
• “Market Transition” between 2030 and 2035, with an emerging commercial and competitive market developing as costs decline with maturing CO₂ transport networks and technological developments reducing the need for government support;
• “Self-sustaining market” from 2035, in which market conditions allow for a self-sustaining and competitive CCUS market.

For more information, see:

• Carbon capture, Usage and Storage.