[London, 1 May 2025] – The Carbon Capture & Storage Association (CCSA) today underscores the urgent need for clear government direction to advance the next phase of Carbon Capture, Usage, and Storage (CCUS) projects, following the publication of its report, Future Business Models and Allocation Frameworks.
The report highlights how collaboration between Government and industry can reduce costs, mitigate risks, and deliver economic value across the CCUS supply chain. It proposes a roadmap to transition the sector from early-stage public support to a self-sustaining, market-driven industry critical to achieving the UK’s net zero targets and creating and protecting thousands of jobs.
The CCSA stresses the importance of delivering existing projects—including Track-1 (initial clusters), Track-2 (next-phase clusters), Track-1 Expansion, and other mature clusters aiming to deliver along similar timescales—to unlock billions in private investment, revitalise industrial regions, and position the UK as a global CCUS leader. Success hinges on urgent government support for near-term clusters while laying the groundwork for long-term market stability.
The report identifies critical challenges and opportunities: :
To ensure CCUS evolves into a sustainable, market-led sector, the report recommends:
Mark Sommerfeld, UK Director of the CCSA, said:
“The UK’s CCUS industry is at a critical juncture. The successful delivery of the current project pipeline is essential, with government support urgently needed for Track-2, Track-1 Expansion, and other mature clusters operating on similar timelines. While the industry is actively collaborating with Government to establish the sector, it is equally important to lay the foundations for a self-sustaining future CCUS market. Achieving this will unlock cost reductions, lower investment risk and deliver long-term economic and environmental benefits for the UK.
To realise the full potential of the sector, we need long-term policy certainty, robust funding frameworks and a clear government strategy to build a thriving, competitive, and market-driven CCUS industry. This report is a blueprint for collaboration, and we look forward to working with all stakeholders to shape the future of CCUS in the UK.”
Chris Thackeray, Director and Global CCS Lead, Baringa, and CCSA Board Member, said:
“The UK has positioned itself as a global leader in CCUS policy and is set to deliver some of the first major privately financed CCS clusters. We now have an opportunity to maintain this momentum with increased pace of delivery at the scale required to achieve climate mitigation and exploit this incredible industrial opportunity for the UK. We now need a sharp focus on how future projects are economically incentivised. Close collaboration between industry and government will continue to be essential.
We should develop allocation models that build on the lessons from the initial projects and drive the transition to a self-sustaining industry, with a well thought through market transition that reduces the subsidy burden on government whilst maintaining an investible proposition.
Acting now will bring more long-term certainty for investors, reduce costs, and secure jobs across the UK’s industrial heartlands and exploit our massive offshore storage potential — giving them a clear route to market and a sustainable future.”
Download the briefing here.
Notes to Editors
Interview requests: To interview Mark Sommerfeld, UK Director, please contact press@ccsassociation.org
For media enquiries please contact Sara Price on 07825235313 / press@ccsassociation.org
Press Pack: Infographics and an animation accompany the press release for use. Download the press pack 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.
For media enquiries please email press@ccsassociation.org