[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:
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
About Finlay’s Wray degree programme
“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:
About the Liverpool Bay T&S project contractors:
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.