Overview
In February 2025, the CCSA submitted a response to the Welsh Government’s preferred policy on carbon capture, utilisation and storage (CCUS) consultation.
The consultation explored the challenges and opportunities of CCUS in Wales; the potential for CCUS to support Welsh decarbonisation goals, whilst retaining sustainable industry within Wales; and outlined the Welsh Government’s preferred policy position at this time.
The Welsh Government’s key policy principles focus on primarily achieving decarbonisation through sustainable methods and reducing fossil fuel reliance, whilst fostering long-term decarbonisation and economic growth. The policy position outlined that CCUS should be supported where:
Why does it Matter?
The launch of this consultation marks a crucial step in recognising the role that CCUS can play in the decarbonisation of Wales and raising public awareness of the technology’s role in the wider net zero transition.
Three CCUS clusters are currently looking to deploy either wholly or partially in Wales: HyNet North West, the South Wales Industrial Cluster (SWIC) and 7CO2, with six corresponding capture projects: Parc Adfer, Padeswood Cement Works CCS, Connah’s Quay Low Carbon Power Project, Uskmouth Power Station Carbon Capture, Trident Park Energy Recovery Facility, and the Pembroke Power Station Decarbonisation project. These projects require the support of the Welsh Government to ensure they become operational and fully achieve their decarbonisation potential.
CCSA Position
Disagreement with the Preferred Policy Position
The consultation phrasing of “emission reduction methods that avoid the creation of emissions is preferable to CCUS, where such methods are technically and economically feasible”, and the need to “eliminate all need for capture and storage” is challenging for the CCSA to fully agree with. CCUS has been classified as an “unavoidable” technology if we are to achieve our global net zero ambitions by both the Climate Change Committee and the Intergovernmental Panel on Climate Change. The preferred policy position also misaligns with the established well-being goals and proposals outlined in Net Zero Wales Carbon Budget 2 (2021-2025).
CCUS is crucial for decarbonising hard-to-abate industries such as cement and lime, enabling low-carbon products production, power generation, and negative emissions. Despite extensive evidence supporting CCUS, the Welsh Government’s hesitation contrasts with the advice set out by the IPCC, CCC, and numerous independent experts, potentially delaying critical market progress in Wales. As a result, the CCSA does not fully support the Welsh Government’s current policy position.
Furthermore, the CCSA set out that the current policy places a burden on developers to make the case for CCUS projects over other low-carbon technologies in the absence of clear criteria and guidance on how this will be judged.
How CCUS Can Boost Welsh Opportunities
CCUS represents a significant opportunity for Wales, particularly as around 90% of Welsh energy is currently derived from fossil fuels. Modelling suggests that by 2050, using CCUS could reduce Welsh industry emissions by 5-6 million tonnes of carbon dioxide (CO2) equivalent (MtCO2e), compared to scenarios without CCUS.
Economically, CCUS could bring substantial benefits to Wales. By 2030, CCUS could attract up to £26 billion in private investment to the UK with Wales set to share in these gains. The UK is well-positioned to lead the global market, with nearly one-third of Europe’s total storage capacity. Welsh focused research also suggests offshore storage in the East Irish Sea is a strong opportunity for Welsh carbon dioxide (CO2) storage.
Incorporating CCUS aligns with several important Welsh principles, such as the Well-being of Future Generations (Wales) Act 2015, but also the Environment (Wales) Act 2016. Additionally, CCUS can drive investment in pioneering technology fostering growth and job creation in Welsh heartlands –helping to support Welsh innovation goals. Not only will this encourage locals to stay, thereby helping to protect Welsh culture and language, but it will also help to engage with Welsh communities and bring them on the journey to net zero.
Supporting policies and actions are crucial for the success of current and future projects. These include the implementation of pipeline and non-pipeline transport (NPT) of CO2, addressing regulatory barriers, streamlining of planning and permitting processes, and the need for clear distinctions between the roles of the UK and Welsh Governments to ensure that developers understand each government’s responsibilities, although continual collaboration and alignment will be key.
Moving Forward and Next Steps
Based on the outcome of the consultation, the preferred policy position will be finalised and presented in a Ministerial written statement to the Senedd. It will outline the policy objective for CCUS and will be incorporated into future editions of Planning Policy Wales and Net Zero Wales Carbon Budgets.
Detailed guidance on implementing the policy will then be developed for planning offices and other decision-makers. While the preferred policy position will set out strategic objectives, it will not offer specific advice on how to apply them. As a result, further guidance will clarify how the policy works in practice and outline the types of evidence required from developers and decision-makers.
Clear policy guidance will provide demand certainty for CCUS, enabling Welsh decarbonisation stakeholders and project developers to move forward with confidence. CCUS is vital to Welsh net zero ambitions, and the CCSA is eager for the Welsh Government seize this opportunity.