CCSA strengthens European leadership with appointment of new Board members

The UK’s Carbon Capture, Utilisation and Storage (CCUS) industry has reached a critical juncture. Years of planning and persistence are now paying off: five Final Investment Decisions (FIDs) have been secured, allowing the first major projects to break ground and start construction. CCUS is no longer an ambition – it’s becoming the cornerstone of Britain’s clean industrial future.

With the Autumn Budget fast approaching, the CCSA has put forward non-fiscal recommendations to the Treasury aimed at accelerating progress towards a thrilling, self-sustaining CCUS sector that decarbonises industries and delivers low carbon power.

The Chancellor has recently set out her ambition “to invest in our infrastructure and our industry to build a stronger economy.” That message is important for CCUS deployment. The UK faces a challenging economic landscape, shaped by sluggish global growth, inflationary pressures and tight fiscal conditions. However, CCUS can unlock growth and deliver lasting economic strength – building resilience, productivity and prosperity for the decades ahead.

Why CCUS matters now

That is why the Government must build on the progress made in the recent Spending Review. CCUS is an economic lifeline and will unlock billions in private investment, revitalise industrial regions, and secure jobs across the country – from pipeline welders in the North West to offshore engineers in Aberdeen and scientists pioneering new carbon utilisation technologies.

Delivering the first four industrial clusters will add £8 billion in GVA annually by 2030, rising to £94 billion by 2050, with more than 80% of the supply chain deliverable by UK firms. The emerging CO₂ storage industry alone could be worth £30 billion a year by mid-century, creating a major new export market for British expertise.

But this is also about what we stand to lose if we don’t act. Without CCUS, millions more tonnes of CO₂ will continue to enter our atmosphere every year – warming our planet, worsening air quality, and eroding the natural environment we depend on. The cost of inaction is far higher than the cost of investment. Failing to decarbonise essential industries like cement, chemicals and refining not only puts jobs at risk, but weakens their long-term competitiveness – and in doing so, jeopardises our health, our climate and the prosperity of future generations.

CCUS, alongside Greenhouse Gas Removals (GGRs) has rightly been recognised by the Government as a ‘frontier industry’ in its Industrial Strategy. From enabling the production of low carbon cement for the homes of the future, to sustaining the energy expertise developed in the North Sea and supporting a just transition for workers and communities, CCUS offers a chance to reimagine British industry – not as a legacy of the past, but as a global leader in clean technology.

CCUS priorities for the Autumn Budget

The Autumn Budget presents an opportunity to accelerate progress towards creating a thriving, self-sustaining CCUS sector that decarbonises industries and delivers low-carbon power. With the UK now delivering the first projects across our industrial heartlands, millions of tonnes of CO₂ will soon be captured and stored, ensuring that our vital foundational industries remain active and competitive.

The UK can cement its position as a global CCUS leader by taking forward three actions that signal long-term commitment and can strengthen investor confidence:

1. Maintain momentum on current projects
Following the Government commitment made at the Spending Review, we now need to see this development funding deployed swiftly to Viking CCS and the Acorn Project, the next two industrial clusters, to keep them on track to reach financial close within this parliament. This will complement the progress already underway on the East Coast Cluster and HyNet, enabling further capture projects to advance for connection to these clusters in construction.

2. Provide a clear route to market for new projects
Provide a clear route to market and an allocation framework for the next CCUS projects required to meet decarbonisation goals and sustain critical foundational industries. In doing so this must also accelerate the development of market frameworks for CO₂ transport by ship, road and rail to complement the pipeline projects that are already underway.

3. Create markets for low-carbon products and removals
Implement enabling policies and regulations to stimulate markets for low-carbon products, carbon removals, and European-wide CO₂ storage. This will create supportive revenue markets for CCUS projects that will enable the transition to a self-sustaining sector.

Taken together, these steps will ensure that the UK maximises the economic opportunity CCUS offers and shifts the industry towards a merchant model, not reliant on government subsidise – an industrial ecosystem ready for the 2030s and beyond.

Building a clean future

The story of Britain’s industrial heartlands – Teesside, the Humber, the North West, South Wales, Derbyshire & Staffordshire, and Scotland – is the story of modern Britain itself. These regions powered the Industrial Revolution, built the nation’s prosperity, and shaped our identity as a world-leading manufacturing power.

Despite decades of industrial decline, that story is not over. CCUS offers a way to honour that legacy while building a modern, clean-energy economy rooted in those same communities.

New projects are bringing investment, apprenticeships, and pride back to these regions. The expertise developed in the North Sea – in geology, offshore engineering, and large-scale project delivery – can be redeployed to store carbon safely beneath the seabed. The same skills that have maintained Britain’s energy security will now also underpin its decarbonisation.

This is more than climate policy – it’s industrial renewal. When people can build skilled, well-paid careers where they grew up, producing the low-carbon materials that will build our homes, hospitals and infrastructure, the transition to net zero becomes tangible, local and proudly British.

We now need to maintain momentum on CCUS deployment to build a stronger economy. The Chancellor has a huge opportunity at this Budget to do exactly that with the actions set out above – many of which come at minimal cost to the Exchequer, but with maximum benefit for Britain’s industry, environment and long-term prosperity. (more…)

Context

Earlier this year, the Carbon Capture and Storage Association (CCSA) responded to the UK Government’s consultation on ”Building the North Sea’s energy future”. This consultation was run by the North Sea Transition Authority (the NSTA), the regulator for North Sea oil and gas, offshore hydrogen, and carbon storage industries. The consultation focused on ensuring a managed, prosperous, and secure energy transition – one that enables the UK to deliver on its ambition to become a global clean energy superpower.

The UK’s ability to lead this global shift hinges on unlocking the full potential of the North Sea. With world-class geology across the UK Continental Shelf (UKCS) and a workforce renowned for offshore expertise, the CCSA emphasised that Carbon Capture, Utilisation and Storage (CCUS) must sit at the heart of the North Sea transition – reducing emissions, supporting skilled employment and strengthening the UK’s international leadership in clean energy.

Why Does It Matter?

CCUS is critical to the UK’s energy transition and the North Sea presents a unique opportunity for its deployment, critical for meeting net zero targets while also generating economic growth. With an estimated 78 gigatonnes of Carbon Dioxide (CO₂) storage capacity, the UK holds over a third of Europe’s entire storage potential. This makes the North Sea one of the most valuable assets for industrial decarbonisation in both the UK and wider Europe.

The CCSA’s response stressed the need to keep CCUS at the centre of planning for the North Sea’s future – not just for essential emission reductions, but to grow UK supply chain capabilities and skilled workforces to secure a leading position in the global carbon capture market.

From vision to action

The CCSA welcomes DESNZ’s focus on building new clean energy industries and leveraging the North Sea’s established expertise. However, it argues that stronger and clearer policy direction will be needed to turn ambition into action.

To fully realise the UK’s CCUS potential, the Government must think about providing signals and support to projects and clusters across the country that could handle European volumes of CO₂, while accelerating work on non-pipeline transport and cross-border trade. A joined-up approach will be essential to ensure that the UK’s CCUS industry can operate efficiently, affordably, and at scale.

Investment in the North Sea’s clean energy future must also go hand in hand with investment in its people and supply chains. The transition offers a natural pathway for the oil and gas industry to redeploy its capabilities, with 80% of the Carbon Capture and Storage (CCS) value chain targetable by the O&G supply chain. With the right policies, the growth of UK CCUS exports could add £4.3 billion to Gross Value Added by 2050.

But this opportunity depends on timing. Declining North Sea activity makes it imperative for the Government to act decisively to align supply chain readiness with project deployment. Without this coordination, there is a real risk of losing skills, capacity, and competitive advantage, particularly among small and medium-sized enterprises.

The CCSA has therefore called for measures that provide investors with confidence and continuity: a clear CCUS project pipeline, support for early movers, and targeted efforts to protect existing industrial capabilities. It also emphasises the need to address workforce challenges – including skill shortages, an ageing workforce, and limited access to training – through long-term, strategic planning. With the right support, the UK can develop a skilled, future-ready workforce capable of delivering CCUS at scale and speed.

Balancing energy transition and regulation

As the UK reforms it’s licencing of the North Sea, the CCSA urges a balanced approach that reduces emissions without increasing the UK’s dependence on imported, high-carbon fuels. The transition must avoid unintended consequences that could slow CCUS deployment or undermine broader net zero objectives.

The CCSA’s members have emphasised the importance of clear, transparent regulation and the need to recognise that CCUS and other clean energy sectors are fundamentally distinct from oil and gas extraction. For the North Sea’s transition to succeed, the NSTA’s objectives must reflect this difference – and the regulatory framework must be consistent, well-resourced, and closely aligned with wider Government policy.

Turning commitment into delivery

The next step is for the UK Government to translate consultation feedback into a detailed plan for the North Sea’s future. The CCSA reaffirms that CCUS must be central to that strategy.

Clear communication and transparent timelines are critical to building investor confidence. The Government’s £21.7 billion CCUS funding commitment represents a major milestone, but funding alone is not enough. It must be accompanied by enabling policies that strengthen the supply chain, develop the workforce, and remove barriers to market growth.

One such barrier is the need for cross-border CO₂ transport. This could be unlocked through a UK–EU agreement under the Trade and Cooperation Agreement, and through reforms to the UK and EU Emissions Trading Schemes. Encouragingly, the UK and EU are working together toward linking these systems – a step that could accelerate international collaboration on decarbonisation.

The Government also has a key role to play in clarifying how existing oil and gas infrastructure can be repurposed to support net zero goals. Repurposing pipelines, wells, and offshore facilities offers a cost-effective way to build CCUS capacity while sustaining local economies and protecting energy communities in transition.

A collaborative future for the North Sea

The CCSA welcomes continued engagement with DESNZ and stands ready to support the refinement of policy that will bring the North Sea’s clean energy future to life.

The region that once powered the UK’s industrial growth now stands at the centre of its low-carbon transformation. By harnessing its geological advantages, engineering expertise, and collaborative spirit, the North Sea can once again define the UK’s industrial identity – this time as a hub for CCUS, clean innovation, and sustainable growth.

With coordinated action, clear policy, and a shared vision, the North Sea can become not just a chapter in the UK’s energy history, but a cornerstone of its decarbonised future.