Major milestones on the first carbon capture projects in energy from waste and cement sectors 

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Major milestones on the first carbon capture projects in energy from waste and cement sectors 

Posted on: September 25th, 2025 by ccsaEditor

 

[London, 25 September] The Carbon Capture and Storage Association (CCSA) today welcomed the fantastic announcement that Encyclis and Heidelberg Materials have signed final contracts with UK Government to begin construction. 

These announcements represent significant milestones for two of the UK’s hardest-to-abate sectors – energy from waste and cement – both of which play a vital role in delivering a low carbon economy. 

Encyclis’ Protos ERF project will capture CO₂ emissions from unrecyclable waste and transport them via the HyNet CO₂ pipeline for permanent storage in Eni’s Liverpool Bay store. This will mean household and business waste that cannot be recycled is turned into reliable, low carbon power, while simultaneously cutting emissions and supporting local job creation.  

Heidelberg Materials’ Padeswood cement facility will capture around 800,000 tonnes of CO₂ a year from its existing cement works, producing net zero cement. This will enable the decarbonisation of one of the UK’s most essential and carbon intensive building materials, used in everyday life from homes and hospitals to football stadiums and infrastructure.  

Together, these projects will support 500 jobs during construction and operation, providing new opportunities in engineering, construction, operations and the wider supply chain. They will anchor investment in industrial heartlands and create a platform for the UK to lead in low carbon industrial technologies. 

But this must be only the beginning. To decarbonise our industries and remain competitive internationally, the UK needs to rapidly deploy a much wider pipeline of CCUS projects across multiple sectors and regions.  

The CCSA will continue to work constructively with Government to ensure that CCUS remains a priority and moves towards a self-sustaining market that delivers industrial decarbonisation, creates skilled jobs, and drives long-term economic prosperity. 

 

Olivia Powis, CEO of the CCSA, said: 

“Heidelberg Materials’ Padeswood and Encyclis’ Protos Energy Recovery Facility reach landmark moments in the global leadership of the UK’s industrial decarbonisation.”  

“Cement and energy from waste are two of the most difficult sectors to decarbonise, yet they are fundamental to our economy and way of life – from building new homes and vital infrastructure to managing society’s unrecyclable waste and providing reliable low carbon power. 

“These world-leading projects show how carbon capture can provide credible, scalable pathways to net zero, securing the future of essential UK industries and keeping businesses competitive in global markets. By capturing CO₂ and transporting it via the HyNet network to Eni’s permanent storage in Liverpool Bay, these projects will cut emissions, support 500 skilled jobs, decarbonise essential waste treatment infrastructure and kickstart the UK’s new low carbon cement market, driving economic growth in local communities.” 

 

Mark Burrows-Smith, Encyclis Chief Executive, said:  

“We have secured a once-in-a-generation opportunity to begin decarbonising waste treatment in the UK. This first full-scale carbon capture deployment in the UK enables us to continue providing an essential treatment service for non-recyclable waste while reducing carbon emissions, creating new skilled jobs and clearing a pathway for wider adoption across the industry.” 

“We are not only building a carbon capture plant but setting the foundations for a new era of industry transformation which helps the UK achieve its greenhouse gas reduction targets and manage its resources more efficiently.” 

 

Simon Willis, CEO at Heidelberg Materials UK, said:  

“Our constructive partnership with the UK Government has allowed us to reach this major milestone, which is fantastic news, not just for us, but for the industry as a whole.” 

“Our new facility at Padeswood will be a world-leader. It will capture around 800,000 tonnes of CO₂ a year from our existing cement works, allowing us to produce evoZero net zero cement, which will help the UK construction industry reach its decarbonisation aims.” 

“CCS is a growing sector worldwide and our Padeswood project is an exemplar, helping position the UK as a global force at the forefront of this technology. It will also pave the way to decarbonising our domestic cement industry, helping it remain competitive while mitigating against climate change.” 

 

Notes to Editor 

 

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, CO2transportation 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.  

 

FAQ’S and MythBusters 

Isn’t CCUS just an excuse for polluting industries to carry on as usual?
CCUS is essential for decarbonising sectors like cement, energy from waste, refining, and chemicals — where emissions are unavoidable. It is recognised by the Climate Change Committee as a critical part of achieving net zero, not a substitute for emissions reduction.  

Isn’t CCUS too expensive compared to renewables?
Independent bodies including the National Audit Office have confirmed that the cost of deploying CCUS is lower than the cost of failing to meet climate targets. It also reduces the cost of the transition by supporting system flexibility.  

Isn’t CCUS unproven and risky?
CCUS has been operating safely for decades. Projects like Sleipner and Northern Lights in Norway have stored CO₂ securely for over 25 years. Today, over 50 commercial-scale facilities are operating worldwide.  

Won’t CCUS delay investment in other clean technologies?
CCUS is complementary to technologies like renewables and hydrogen. The UK needs flexible low-carbon power to ensure security of supply — including CCUS-enabled power and hydrogen-to-power.  

Why should the public subsidise CCUS projects?
Support is structured to deliver value for money. For example, funding is only released once projects reach agreed milestones. At full scale, the programme equates to around 28p per person per week, with gainshare mechanisms in place to return value to the taxpayer.  

Why is there delay in the UK CCUS rollout?
CCUS projects are ready. The infrastructure, investment, and workforce are in place — but timely policy decisions are needed to unlock further progress. Delay risks missing net zero targets and losing industrial competitiveness.  

Can’t we just use nature-based solutions instead?
Nature-based solutions are important, but they won’t be enough on their own. Engineered removals, including BECCS and EfW with CCS, are essential to reach UK climate targets — starting from 5 MtCO₂/year by 2030.  

Is there really a market for captured carbon?
Demand for high-quality carbon removals is growing — with nearly 10 million tonnes of removal credits sold globally to date. The UK is well placed to lead in this emerging global market.  

Does the UK have the infrastructure to scale CCUS?
Yes — the UK has world-class geology for CO₂ storage and a growing pipeline of projects across multiple clusters. With the right policy framework, these can deliver significant volumes of CO₂ capture by 2030 and beyond.  

Isn’t the UK falling behind on CCUS?
Other countries are moving quickly, but the UK has the opportunity to lead. We have the storage capacity, industrial base, and skilled workforce. Accelerating deployment now is critical to securing this competitive advantage.  

CCSA Statement in Response to Geologic Carbon Storage Study

Posted on: September 9th, 2025 by ccsaEditor

Last week, Nature published a new study, “A prudent Planetary Limit for Geologic Carbon Storage”, sparking debate on the global feasibility of geological CO₂ storage at scale. We have now completed further analysis of the report, along with reviewing the scrutiny the report has received from academic and industry circles.

Responding to the report Mark Sommerfeld, UK Director, said:

“While this study takes a conservative approach in estimating global CO₂ storage capacity, it recognises that CCUS remains a vital technology. Climate experts agree it is an essential tool for achieving our climate goals. Even under the cautious assumptions presented here, there is more than sufficient potential to meet the EU’s target of 50 Mt of CO₂ storage per year by 2030, as well as the Climate Change Committee’s target of 73 Mt per year by 2050. This is further evidenced by many site-specific assessments of storage asset viability, confirming that sites are safe and ready to be developed. Deployed alongside other technologies, CCUS can cut emissions, deliver reliable low carbon energy, and create major economic opportunities.”

CCSA response to Conservative net zero announcement

Posted on: September 5th, 2025 by ccsaEditor

Responding to Kemi Badenoch’s announcement that a Conservative government would remove net zero requirements from oil and gas companies drilling in the North Sea, scrapping work on technologies such as carbon storage, Olivia Powis, CEO of the CCSA, said:

“Carbon capture, utilisation and storage (CCUS) is a vital technology for sustaining a competitive industrial base in the UK, delivering a reliable, low-carbon energy system and addressing climate change. Billions of pounds of private sector investment have already been committed to establishing CCUS clusters, reflecting strong confidence in the UK’s potential. Our analysis shows that full deployment of CCUS could create over 50,000 skilled jobs by 2050, as well as retain thousands of skilled jobs – maximising our offshore skills and expertise, attract £26 billion in private investment by 2030, and add £94 billion in Gross Value Added to the economy by 2050.”

CCSA Press Release: Bridging the Channel on CCUS: EU and UK need to act now on ETS linkage

Posted on: September 3rd, 2025 by ccsaEditor

Brussels, 3 September 2025 – Today, the CCSA and 55+ other leading businesses, associations, and civil society groups have joined forces to deliver a clear message to Brussels and London: it’s time to fast-track cooperation on Carbon Capture Utilisation & Storage as part of the ongoing discussions on linking the EU and UK Emissions Trading Systems (ETS).

In a joint letter sent today to European Commission President Ursula von der Leyen, UK Prime Minister Keir Starmer, and senior EU and UK leaders, the signatories welcome progress towards linking the EU and UK ETS systems. But they warn that without urgent steps to coordinate on Carbon Capture, Utilisation and Storage (CCUS), the ambition risks getting stuck in the pipeline.

The signatories call for the immediate creation of a dedicated Working Group on CCUS under the Trade and Cooperation Agreement’s Specialised Committee on Energy. Such a forum would provide structured dialogue on cross-border CO2 transport and storage and regulatory coordination, key elements for ensuring clarity and predictability for industrial actors investing in decarbonisation.

“Establishing a Working Group on CCUS would allow ETS linkage and cross-border CO2 trade discussions to progress in parallel, accelerating the development of cross-border projects,” the letter states. “This will benefit both EU and UK industrial stakeholders by enabling them to decarbonise their activities while staying competitive”.

According to CCSA’s report Accelerating a Europe-wide CO₂ storage market, with access to UK CO2 storage sites, EU emitters would also benefit from significant cost savings (on average) up to 28% (€16/t of CO₂).

The letter outlines key recommendations for the EU and UK’s preparatory work on ETS linkage, including:

With both the EU and UK highlighting CCUS as a pillar of their decarbonisation strategies, the signatories stress that now is the opportune moment to act. By confirming the role of CCUS into ETS linkage negotiations, policymakers can accelerate the rollout of crucial CO2 cross-border infrastructure.

ENDS

 

Notes to Editor 

Media contact: For questions or requests, please contact francesco.dapolito@ccsassociation.org

About the CCSA 

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting Europe’s climate 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. 

CCSA blog: blue hydrogen: the key to Welsh net zero potential

Posted on: September 1st, 2025 by ccsaEditor

Consultation: Welsh Government’s Hydrogen Policy consultation

Department: Welsh Government

Consultation Period: February – May 2025

Region: Wales

 

Context

As we await the Welsh Government response, and ahead of the Welsh Senedd returning from summer recess, this blog looks at the CCSA responce to the Hydrogen policy consultation. The consultation followed the Welsh Government’s consultation on CCUS – a previous CCSA blog post for the CCUS consultation can be found here.

The Welsh Government outlined its commitment to support hydrogen developments that contribute meaningfully to net zero targets and a just transition. Its position emphasised that hydrogen will be supported where it delivers a demonstrable and sustainable contribution to decarbonisation, strengthens the green economy, and avoids locking in fossil fuel dependency. This approach is guided by the following key principles:

 

Why does it matter?

Wales is well-placed to support blue hydrogen and wider Carbon Capture, Utilisation and Storage (CCUS) deployment, with three industrial clusters fully or partially based in the region: HyNet North West, the South Wales Industrial Cluster (SWIC), and 7CO2. Blue hydrogen projects could connect into these clusters.

South Wales – where the 7CO2 and SWIC clusters are located – offers significant potential for new blue hydrogen production. There is also capability for blue hydrogen production in North East Wales – where the HyNet North West cluster is located. Additionally, there is scope to retrofit existing grey hydrogen facilities in South Wales for blue hydrogen production. Proactive interventions are therefore needed from the Welsh Government to realise these opportunities.

 

CCSA position

Deploying blue hydrogen at pace and scale would reinforce the Welsh Government’s commitment to a technology-neutral hydrogen strategy, ensuring no specific technologies are favoured. The CCSA echo the Climate Change Committee’s (CCC’s) advice in the Welsh Fourth Carbon Budget advice that low-carbon fuels, CCS, and engineered removals are required to meet Welsh 2040 and 2050 carbon budget and net zero targets.

Blue hydrogen projects can act as early enablers of the LCH sector due to their comparatively lower costs than green hydrogen, meaning that Wales can quickly secure climate benefits from hydrogen production. Hydrogen UK research indicates that blue hydrogen production at gigawatt (GW) scale will become operational sooner than comparable electrolytic production projects, enabling the decarbonisation of hard-to-abate sectors and baseload volumes of hydrogen from an earlier date.

Additionally, the consultation places heavy evidentiary burdens on developers to prove that hydrogen projects support long-term decarbonisation and economic growth, a burden not placed on other infrastructure projects – potentially delaying sector progress.

The hierarchy’s system-wide approach also poses challenges, as individual developers often lack visibility over the full value chain, making it difficult to determine how the hierarchy applies to specific projects.

Once finalised, the Welsh Government’s policy should be integrated within existing policy and regulatory frameworks, providing clear requirements to developers. The CCSA calls for alignment with the UK Government, CCC, and National Energy System Operator (NESO) policies for streamlined deployment.

Collaborative efforts are particularly crucial to mobilise the full LCH value chain simultaneously. Research has shown that in 2030, blue hydrogen production in the UK will be associated with ~4,000 jobs directly and generate £1.2 billion of direct and indirect Gross Value Added (GVA) annually. Without coordinated development across the value chain, progress in the blue hydrogen sector could slow, which could mean that Wales may not fully capture some of these economic benefits.

 

Moving forward and next steps

Following consultation, the Welsh Government will finalise and integrate the hydrogen policy into future updates of Planning Policy Wales, Net Zero Wales Carbon Budgets, environmental permitting, and energy licensing – providing clarity to developers, regulators, and the public on the Welsh Government’s hydrogen objectives.

With CCUS clusters and supporting infrastructure already advancing in Wales, now is a pivotal moment. Clear policy guidance from the Welsh Government is needed to create demand certainty and retain investor confidence. However, it is essential that this is complemented by UK Government actions, for instance through providing clarity on future allocation rounds.

The CCSA is committed to advancing CCUS and LCH across the UK and welcomes continued collaboration with the Welsh Government and wider stakeholders to accelerate deployment in Wales. The CCSA encourages stakeholders to share views on how to ensure the Welsh hydrogen policy supports coordinated infrastructure delivery and investment readiness.