June 2025 - CCSA

CCSA Response to the Climate Change Committee’s Progress Report on Emissions Reduction

Posted on: June 25th, 2025 by ccsaEditor

The CCSA welcomes the Climate Change Committee’s (CCC) ‘Progress in Reducing Emissions’ report and recognition of the important advances being made on deploying Carbon Capture, Utilisation and Storage (CCUS).

This comes days after the launch of the Government’s Modern Industrial Strategy which helpfully set out CCUS’s central role in securing the future of UK industry, driving clean growth, and supporting high-quality jobs across the country.

The CCC rightly raises concerns that the window for deploying CCUS in line with the UK’s carbon budgets is narrowing. While recent announcements from government are very encouraging, the focus must now shift from ambition to delivery. Meeting the levels of CCUS and engineered greenhouse gas (GHG) removals required to stay on track with our net zero commitments demands urgent and sustained action.

In particular, the CCSA echoes the CCC’s calls for government to finalise support frameworks for engineered GHG removals, and to move forward with the deployment of industrial emitter projects.

This can be achieved by setting out next steps for utilising the storage capacity in HyNet and the East Coast Custer, reaching financial close on the Acorn project and Viking CCS, and outlining a clear future route to market for additional projects by establishing allocation rounds – all of which are vital to establishing a mature and competitive CCUS industry in the UK.

Olivia Powis, CCSA CEO, said:

“The CCC’s report is a clear signal that we must move beyond strategy and into action. Following the positive government commitments made during the Spending Review and Industrial Strategy, the CCUS industry is ready to deliver once Government sets out its next steps on allocation and provides long-term certainty on market mechanisms. This is not just about hitting climate targets, it’s about protecting UK industry, creating jobs and maintaining our position as a global leader in carbon capture and storage.”

Notes to Editor

Interview requests: To interview Mark Sommerfeld, UK Director at the CCSA, please contact sara.price@ccsassociation.org

For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org Press Pack: An FAQ, infographics and an animation accompany the press release for use. Various press items can be found under “CCSA Press Pack” on the CCSA website HERE

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

Joint Statement: Urgent need for European Commission to correct course on the draft Delegated Regulation on Low Carbon Fuel

Posted on: June 23rd, 2025 by ccsaEditor

Representing the entire energy value chain, from producers to industrial users, clean tech solution providers, and infrastructure operators, the co-signatories call on the European Commission to acknowledge their serious concerns with the current draft Delegated Act defining the GHG methodology for low carbon hydrogen and its derivatives, and to work with industry representatives on amendments.

The new version of this essential secondary legislation would make it overly difficult – if not practically impossible – to produce low carbon hydrogen and fuels, be it in the EU or at global level and imported to the EU.

We urge the European Commission to amend the revised draft to ensure it enables the production and import of all types of low carbon hydrogen and fuels and recognises better environmental performances. This is critical for supporting the scale up of the hydrogen market in Europe, which already faces major challenges that undermine EU’s ability to meet its climate objectives.

Read the full statement here: Urgent need for European Commission

CCSA Statement on the Clean Energy Industries Sector Plan

Posted on: June 23rd, 2025 by ccsaEditor

Olivia Powis, CEO of the CCSA said:

“We are delighted to see the Government’s continued commitment to Carbon Capture, Utilisation & Storage (CCUS), including Greenhouse Gas Removals (GGRs), as a frontier industry. This rightly positions CCUS and GGRs as a core pillar in delivering on three vital national objectives: reaching net zero, driving regional growth, and strengthening economic security.

The UK’s CCUS industry stands ready to deliver and is pleased to see Government’s prioritisation of cross-border CO₂ transport and storage networks in the North Sea, recognising the significant economic benefits for both UK and EU CCUS projects. This builds on the positive momentum from the recent UK-EU Summit – alongside the support confirmed in the Spending Review.

Following these government commitments, a clear timetable for deployment is essential to secure investment, as well as investment in scaling up supply chains and growing the workforce needed to deliver at pace. With continued partnership between government and industry, CCUS can anchor a new era of sustainable industrial growth – one that revitalises communities, boosts energy resilience and ensures the UK leads in tackling climate change.”

CCSA Welcomes Continued Government Commitment for CCUS in Infrastructure Strategy

Posted on: June 19th, 2025 by ccsaEditor

Mark Sommerfeld, UK Director at the CCSA, said:

“Building on the recent Spending Review, the CCSA welcomes the publication of the UK’s 10-Year Infrastructure Strategy and the Government’s continued commitment to Carbon Capture, Utilisation and Storage (CCUS) as a vital enabler of industrial decarbonisation, clean power and economic growth.

We are pleased to see that the strategy supports deploying essential CCUS infrastructure needed to establish a world-leading CCUS industry. This includes reaffirming construction funding to fill the storage capacity of the East Coast Cluster and HyNet, and development funding to progress the Acorn Project and Viking CCS to Final Investment Decision this Parliament.

CCUS is critical to protecting the UK’s industrial heartlands and will play a key role in delivering the Strategy’s regional growth ambitions—supporting regions like Teesside, the Humber, the Northwest and Scotland to thrive in a low-carbon economy. This is already taking shape through growing UK supply chains underpinning recently approved projects.

The CCSA and its members look forward to working with Government to turn this strategy into action. Doing so will require a clear timetable for delivery—building on recent Spending Review decisions—to provide the certainty needed to unlock long-term investment and job creation across the CCUS sector.”

CCSA Welcomes Continued Government Commitment to CCUS in Spending Review

Posted on: June 11th, 2025 by ccsaEditor

[London, 11 June] The Carbon Capture and Storage Association (CCSA) welcomes the Government’s continued support for Carbon Capture, Utilisation and Storage (CCUS) in today’s Spending Review and is committed to working with the Government to ensure all CCUS projects are delivered.

Confirming funding for HyNet and the East Coast Cluster build-out, and development funding to progress Acorn and Viking Clusters to Final Investment Decision this Parliament, marks another significant moment for the UK’s journey to net zero, industrial decarbonisation and clean power.

To be able to decarbonise our foundation industries, create green jobs and economic growth, and deliver a thriving, low-carbon future, the roll out of CCUS is key. It enables the Government’s ambitions to create economic growth, become a clean energy superpower and build affordable housing.

The CCSA and our members are ready to deliver, and we look forward to continuing to work closely with Government to bring these projects from plan to reality, with a clear route to delivering Final Investment Decisions.

Olivia Powis, CCSA CEO, said:

“The CCSA welcomes this statement of support for CCUS in today’s Comprehensive Spending Review, with allocation of funding for the build out of HyNet and the East Coast Cluster and development funding to progress the Acorn Project and Viking CCS. The commitment to taking Final Investment Decision this Parliament, subject to readiness and affordability, for these clusters is welcomed by industry and helps towards giving the confidence it needs to move forward with major investments in low-carbon infrastructure.”

“This is a clear step forward to progressing the next clusters in Scotland and Humber. CCUS is critical to decarbonising our industrial heartlands, supporting clean power and enabling low-carbon hydrogen. It also plays a key role in protecting and creating thousands of high-quality jobs across the country in critical industries like cement, chemicals and refining, and the power system — all of which are essential for meeting the Government’s commitments on new infrastructure and housebuilding. Today’s announcement help position the UK as a world leader in carbon capture technologies.”

Carbon Capture at the Heart of the UK’s Modern Industrial Strategy

Posted on: June 9th, 2025 by ccsaEditor

Consultation: Invest 2035: the UK’s Modern Industrial Strategy

Department: Department for Business and Trade (DBT)

Consultation Period: October – November 2024

Region: UK

Context

Late last year, the CCSA submitted a response to the DBT consultation: ‘Invest 2035: the UK’s Modern Industrial Strategy’. The UK Government’s proposed 10-year Industrial Strategy aims to provide stability for businesses to drive long-term economic growth, with a focus on innovation, entrepreneurship and taking advantage of the UK’s strengths in existing and emerging sectors.

Why does it Matter?

The UK needs an updated Industrial Strategy to support high-growth sectors critical to the Government’s growth mission. Many of these industries—particularly the foundation sectors—will depend on technologies such as Carbon Capture, Utilisation and Storage (CCUS) and hydrogen to realise their full potential and achieve decarbonisation. Embracing these innovations can help secure jobs, prevent deindustrialisation and position the UK as an attractive destination for new investment.

CCSA Position

Clean Growth and Decarbonisation Opportunities – low-carbon technologies have the potential to decarbonise UK industries while developing energy security, creating high-quality jobs, attracting investment and exporting low-carbon expertise around the globe. Decarbonising industries in the UK is essential to removing them as a roadblock to reaching the nation’s net zero target by 2050. A major force behind this shift to net zero is the growth of CCUS clusters and Carbon Dioxide (CO₂) Transport and Storage (T&S) networks which can operate on regional, national and even international scales.

Key sectors essential to achieving decarbonisation and driving economic growth include cement and lime, refining and fuels, chemicals, iron and steel, and Energy from Waste (EfW), as well as emerging low-carbon product markets. In the UK, foundation industries—such as metals, ceramics, glass, chemicals, paper and cement—account for 50 million tonnes of CO₂ emissions annually, representing 10% of the UK’s total emissions from homes and businesses.

A successful modern Industrial Strategy needs to address how these industries will decarbonise to meet net zero and climate goals. Support will be crucial for both established industries and new sectors to cut emissions while unlocking their growth potential.

Positioning the UK as a Global Leader – the UK benefits from its unique geological storage capacity, which equates to almost one third of all of Europe’s storage potential. This competitive advantage alongside growing CCUS networks – including allowing cross-border CO₂ transport – could bring significant economic benefits. Providing storage services to other European countries could generate UK tax receipts while also lowering CO₂ storage costs for UK emitters by achieving economies of scale.

To unlock this potential, key challenges need to be tackled. These include:

Enabling non-pipeline CO₂transport within the UK to offer flexible CO₂ transport for cluster projects and international CO₂
Linkage of the UK and EU Emissions Trading Schemes (ETS) to create a level playing field for UK businesses that are competing in international markets. It was recently announced that the UK Government and the EU plan to work together towards linking the two ETS schemes, and the CCSA would welcome further updates on what this approach entails, along with indicative timescales.
Recognising permanent CO₂ storage across borders and allowing cross-border CO₂ transfers are vital for maximising the benefits of CCUS and driving UK industrial and economic growth.

Establishing an Economic Framework for Industrial Decarbonisation – an effective economic and market framework is crucial for driving industrial decarbonisation. A key priority is setting a stable and reliable UK ETS carbon price to encourage investment in CCUS, negative emission technologies, and other decarbonisation efforts. Linkage between the UK and EU ETS will be key to ensuring a stable carbon price across international markets.

Alongside a stable, predictable carbon price, applying a robust Carbon Border Adjustment Mechanism (CBAM) will guarantee that importers will face equivalent carbon costs to UK manufacturers. This will protect export competitiveness and create a level playing field which minimises the risk of carbon leakage. Both UK and EU CBAMs must also factor in CO₂ imports and exports to meet decarbonisation targets effectively.

The low-carbon product market, in particular, could see huge benefits from a strong economic framework. A reliable UK ETS and a strong CBAM – alongside the introduction of mandatory product standards, and the use of public procurement – could work together to boost growth in this market.

Supporting Markets for Low-Carbon Products – the UK has the potential to take the lead in developing markets for low-carbon products like green cement, low-carbon steel, and other sustainable materials. Government support is key to unlocking this potential, especially through funding CO₂ utilisation projects, public procurement strategies and incentives for low-carbon products. These steps will help the UK tap into emerging markets while supporting its shift to a cleaner economy.

The Importance of Government Clarity – to create a nationwide Industrial Strategy that drives economic growth and meets decarbonisation targets, the Government must provide clear, deliverable, and long-lasting policies. Predictable policies build investor confidence and help businesses make long-term investment decisions. The importance of this is even greater for first-of-a-kind (FOAK), capital-intensive, and infrastructure-heavy projects like CCUS.

The Government must also address delays in permitting and planning processes, which often delay project development. Given the nascent nature of the CCUS sector, the complexities involved in many of the proposed projects in terms of regulatory approval, and the FOAK nature of the projects, approvals of this nature have not been done before and the regulators will likely experience unforeseen difficulties in accurately assessing CCUS project applications.

Additionally, offering clear commitments on future allocation rounds and funding will provide the predictability needed to drive investment and innovation in these key industrial sectors. Assurances made by the Government improve investor confidence, which provides the certainty needed for the long-term planning of CCUS projects.

Regional and Localised Industrial Strategies – a regional, place-based approach is important to harness the unique strengths and growth opportunities of different areas across the UK. The Industrial Strategy should take a regional approach, focusing on high-growth areas like industrial clusters while also helping dispersed sites to decarbonise.

A key priority for this approach is helping supply chains decarbonise industrial sectors – which can be achieved by addressing funding gaps, both nationally and regionally, for skills development and implementing target policies to align regional supply and demand. By building a well-prepared workforce and strong supply chains, the UK can accelerate its industrial transition while strengthening economic resilience at both local and national levels. However, a skills challenge persists within the CCUS sector, which includes a lack of workforce mobility, skills bottlenecks and barriers to new entrants joining the workforce. These issues need to be tackled collaboratively by both Government and industry.

Moving Forward and Next Steps

The UK’s Modern Industrial Strategy must drive growth and decarbonisation by supporting foundation industries, advancing CCUS, ensuring energy security and fostering investment and innovation for a low-carbon future.

The CCSA emphasises that CCUS must be a central component of any industrial strategy, particularly those focused on industrial decarbonisation. But a well-rounded Industrial Strategy needs to be supported by additional measures – for instance, advancing Track-2, Track-1 Expansion and other projects that can deploy along similar timeframes, and a Government commitment to deploying wider enabling market frameworks. This will accelerate the rollout of decarbonisation technologies.

UK CCUS Supply Chain Primed for Growth – But Project Certainty Needed from Spending Review

Posted on: June 4th, 2025 by ccsaEditor

Boost to UK supply chains expected, with growing opportunities for domestic manufacturing and services through CCUS deployment.

Skills and workforce development commitments from the CCUS industry will help ensure UK regions benefit from long-term clean energy jobs.

But to deliver this at scale, beyond the first few projects, the CCSA calls for Government support in the Spending Review for the next CCUS clusters and projects, in Track-2 and Track-1 Expansion.

[London, 4 June] –Growing momentum across the UK’s carbon capture, utilisation and storage (CCUS) sector highlights its potential to revitalise domestic manufacturing, drive regional growth, and create long-term clean energy jobs.

However, this opportunity hinges on the upcoming Government Spending Review providing CCUS project certainty. This will unlock further private investment and enable rapid supply chain scale-up to a supply chain industry worth £2.5bn by 2040 to the UK annually and £54bn per year by 2050 globally.

According to the Carbon Capture and Storage Association (CCSA), a clear and sustained delivery allocation framework with funding is now essential to secure long-term benefits for UK workers, businesses, and manufacturers.

Local Supply Chains Already Gaining Ground

Track-1 CCUS projects that have reached financial close – Net Zero Teesside Power (NZT Power), Northern Endurance Partnership (NEP), both part of the East Coast Cluster, as well as Eni’s Liverpool Bay CCS Project, which is part of HyNet – are already collaborating with a wide range of UK-based suppliers and contractors as they move into construction phases.

These projects are expected to exceed the voluntary ambition that industry committed to of sourcing over 50% of their supply chains from UK companies – and in return asked Government to commit to a pipeline of future projects and targeted investment in the supply chain- which needs to be seen at next week’s Spending Review.

These first projects result in a combined investment in UK companies of more than £5.2 billion during initial stages of development. These investments will help protect existing jobs, create new opportunities and stimulate growth in regions across the UK.

Eni has contracted with over 35 UK companies, with UK based United Living Energy Limited appointed as a lead contractor to deliver the Liverpool Bay CO₂ transport and storage (T&S) infrastructure. At peak construction, the project alone is expected to support around 2,000 jobs across the UK. During later stages, yet more CCUS projects are expected to connect to Eni’s network, serving as a catalyst for regional growth.

In Teesside, the East Coast Cluster’s projects awarded Engineering, Procurement and Construction (EPC) contracts worth a combined £4 billion, with local firms like Liberty Steel in Hartlepool already ramping up production and increasing headcount to meet demand for line pipe manufacturing. Overall, the project is expected to deliver 3,000 jobs at peak construction.

Real Jobs, Real Skills, Real Opportunity

CCUS isn’t just a concept — it’s becoming reality for key industrial regions in the UK. As Finlay Wray, a Degree Apprentice in Project Controls for NZT Power and NEP, shares:

“Being part of the NZT Power and NEP project is really exciting. I’m gaining hands-on skills and knowledge that’ll help me start my career in the energy sector. I’ve also learnt about how the project will decarbonise power generation and businesses in Teesside, and I’m proud to be part of it. It’s been a really rewarding experience so far.”

Initiatives like the Tees Valley Net Zero Industry Scholarship, which NEP and NZT Power fund, are helping train the next generation in welding, pipefitting, electrical engineering and more — laying the foundation for a skilled, homegrown workforce ready to lead the global CCUS transition. Around 150 scholars are expected to start on the scholarship programme in September, with plans to expand the scheme over the coming years.

However, the industry can’t build a sustained supply chain from a handful of first projects. To ensure that more people like Finaly can take up degree level apprenticeships at CCUS projects, the UK Government must, at the Spending Review, unlock the next clusters and projects. This will provide further opportunities for UK suppliers across sectors including construction, fabrication, equipment manufacturing, and project delivery.

This includes sustained government support:

Funding commitments for the next projects that are ready to deploy in Track-2 (Acorn and Viking) and Track-1 Expansion.

Committing to a clear forward programme for carbon capture project allocation to provide confidence for investors and suppliers, targeting both Track-1 and Track-2 clusters as well as other advanced clusters working on similar timescales.

Offering targeted financial support to help UK manufacturers and service providers scale up and transition into CCUS delivery.

As has already been demonstrated by the first projects moving into construction, the industry targets a goal of 50% UK content in CCUS projects by 2030, in line with the North Sea Transition Deal — ensuring that carbon capture not only reduces emissions, but also drives economic renewal in industrial regions.

Olivia Powis, CCSA CEO, said:

“The UK supply chain is ready to respond with the skills, innovation and capabilities needed to make UK CCUS a world-leading industry. But continued Government commitment and a pipeline of future projects is essential to ensure that domestic suppliers can compete, scale up and create lasting jobs across the country – otherwise we will see investors and this industry go overseas.”

Notes to Editor

Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact sara.price@ccsassociation.org

For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org

Press Pack: An FAQ, infographics and an animation accompany the press release for use. Various press items can be found under “CCSA Press Pack” on the CCSA website HERE

About Finlay’s Wray degree programme

Project Controls Degree Apprentice – Cost Engineering NZT/NEP, based in Teesside.

The degree apprenticeship programme is 4 years long. During this time, apprentices work on different projects alongside learning day to day operations, to become a rounded professional.

“The programme I am undertaking is a privilege to be a part of, and I am only just getting started. Project Controls is something that few people are aware of but is essential to providing the success of this project. During my 4-year apprenticeship I indulge into many different aspects of Project Controls such as Planning, Estimating, and Cost Engineering, which is my current discipline, helping my team members and line manager provide the correct reporting requirements and information needed to contribute to the end goal of the project. Alongside the valuable work experience I study full-time also, working towards becoming a Project Controls Professional at a Level 6 Grade, coming out the other side of it with a degree. My first 9 months have been exceptional and full of learning, and I can’t wait to continue.”

About the EEC contractors:

Onshore Power, Capture and Compression – Technip Energies and GE Vernova consortium including Balfour Beatty as the construction partner and Shell as the technology licensor

Onshore CO₂ gathering system and gas connection – Costain

Linepipe – Onshore and Offshore – Marubeni-Itochu Tubulars Europe Plc with Liberty Steel Hartlepool, Corinth Pipeworks and Eisenbau Kramer GmbH as the nominated pipe-mills

Offshore Pipeline, Landfalls, Onshore Outlet Facilities and Water Outfall – Saipem

Offshore Subsea Injection System – TechnipFMC

Power and Communications Cable – Alcatel Submarine Networks

Offshore Systems Engineering – Genesis

Integrated Project Management Team – Wood

About the Liverpool Bay T&S project contractors:

EPC installation Onshore pipeline and spurlines: United Living (involving ca. 24 local subcontractors)

Linepipe Onshore and spurlines: Corinth

Onshore plant & compression: Saipem (involving ca. 12 local subcontractors)

Electrical Cable Offshore Installation: Boskalis NL

Electrical Cable supplier: JDR UK

Offshore Diving activities: Boskalis UK

EPC Offshore structures: Rosetti

Integrated Control System: ABB