CCSA response to Conservative net zero announcement

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.”

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:

• Ensuring mutual eligibility of emission allowances across both systems and joint oversight of registries and auctions
• Developing compatible market stability mechanisms and aligning phase-out of free allowances
• Recognising CO₂ transport and storage under both regulatory regimes, to enable access to UK storage sites and deliver significant cost savings for EU emitters
• Coordinating standards on CO₂ specifications, metering, carbon removals integration, and certification methodologies

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. 

The INEOS Olefins & Polymers plant at Grangemouth is fighting to stay competitive in a challenging global market – a warning sign for UK manufacturing. The CCSA is continuing to call for the rapid deployment of carbon capture, utilisation and storage (CCUS) to safeguard the future of British industry.

Following recent reports that the INEOS Olefins & Polymers plant at Grangemouth is at risk of closure, Mark Sommerfeld, UK Director of the CCSA, said:

“Reports of potential further closures at Grangemouth are another stark reminder of the need to accelerate CCUS deployment to protect our foundational industries. Projects like Acorn in Scotland and Viking on the East Coast, are critical to providing the long-term, low-carbon infrastructure that will keep these industries competitive, protect skilled jobs, and attract new investment. Without this, we risk losing the very sectors that will grow the economy and deliver the clean energy transition.”

• Ten projects now in negotiations phase to join the HyNet CO2 transport and storage network. This will unlock skilled jobs in the region and low carbon power. 

• Five projects classified as Priority which includes two new projects of Connah’s Quay Low Carbon Power and Ince Bioenergy with Carbon Capture and Storage (InBECCS) alongside three existing projects; Protos Energy Recovery Facility (Encyclis), Padeswood Cement Plant (Heidelberg Materials), and Hydrogen Production Plant 1 (EETH). 

• Five projects have also been selected as standby projects to connect to the network in the future, depending on future capacity. 

• Projects on the standby list will also be critical to protecting and decarbonising the region’s industrial activities. The CCSA urges the Government to continue to develop a clear pathway for their connection to HyNet. 

[London, 5 August] HyNet, one of the UK’s leading industrial decarbonisation clusters, is advancing with the announcement that five projects are now priority for negotiations to connect to the HyNet CO₂ transport and storage network and permanently remove their CO2. This marks another step forward in the UK’s clean energy transition.  

The Carbon Capture and Storage Association (CCSA) welcomes the commitment to two new priority projects in the North West and North Wales building on the excellent news of Financial Close on Liverpool Bay CCS earlier this year. Connah’s Quay Low Carbon Power project in North Wales will play an important role in delivering reliable dispatchable clean power by 2030, and Evero’s Ince Bioenergy with Carbon Capture and Storage (InBECCS) in Cheshire will be the first in the UK to deliver engineered greenhouse gas removals, advancing the establishment of this critical sector. 

Alongside these two new projects entering priority negotiations are the previously prioritised; Protos Energy Recovery Facility (Enclyclis), Padeswood Cement Plant (Heidelberg Materials), and Hydrogen Production Plant 1 (EETH). These projects will provide the UK’s first; 

• Low-carbon cement, essential for building our homes and hospitals  

• Low-carbon hydrogen, essential for powering our local industries  

• Energy from waste, essential for decarbonising our waste streams  

Despite the welcomed progress announced today, the number of projects on the standby list – all of which have invested significant sums to date in the development of their projects – makes clear that there must be a long-term plan for bringing additional projects to market. This is vital to decarbonising our foundational industries and delivering secure clean power. 

The Carbon Capture and Storage Association (CCSA) is engaging with the Government to ensure that these, and other projects can move forward as the market scales up, including industry working with consumers to grow demand for low carbon products. This is vital to ensuring the UK’s long-term decarbonisation targets can be met and industrial competitiveness preserved. 

Olivia Powis, CEO of the CCSA, said: 

“Today’s news is another clear signal that the UK is serious about delivering carbon capture and storage. The build-out of HyNet not only strengthens energy security and climate action, but it also brings real, skilled jobs and vital long-term investment to communities in the North West and North Wales.” 

“However, we need a long-term plan for bringing the projects on standby to market. If our industrial heartlands are to decarbonise and remain competitive, it’s crucial the Government sets out a clear, long-term pathway that allows more emitters and industries to connect to the CO₂ transport and storage network. This will be alongside industry working with consumers to grow demand for low carbon products. We must fully utilise our world-class storage resources to reach net zero and grow our economy.” 

Notes to Editor  

• Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact sara.price@ccsassociation.org  

• For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org  

• Press Pack: An FAQ, infographics and an animation accompany the press release for use. Various press items can be found under “CCSA Press Pack” on the CCSA website HERE   

Project Negotiation List 

Priority for negotiations:   

• Connah’s Quay Low Carbon Power, Uniper, Connah’s Quay (North Wales)   

• Ince Bioenergy with Carbon Capture and Storage (InBECCS), Evero Energy, Ellesmere Port (Cheshire)  

• Protos Energy Recovery Facility, Encyclis, Ellesmere Port (Cheshire)   

• Hanson Padeswood Cement Works Carbon Capture Project, Heidelberg Materials, Padeswood (North Wales)    

• Hydrogen Production Plant 1 (HPP1), EET Hydrogen, Stanlow (Cheshire)   

Standby projects: 

• Silver Birch, Climeworks UK Ltd , Stanlow (Cheshire)   

• Essar Energy Transition Industrial Carbon Capture (EET ICC), EET Fuels, Stanlow (Cheshire)   

• Hydrogen Production Plant 2 (HPP2), EET Hydrogen / Progressive Energy, Stanlow (Cheshire)   

• Parc Adfer Energy from Waste Industrial Carbon Capture Project, Enfinium Group Ltd, Deeside (North Wales)   

• Runcorn Carbon Capture Project, Viridor, Runcorn (Cheshire)    

This announcement builds on: 

• The commitment of up to £21.7 billion over 25 years to support the rollout of HyNet and the East Coast Cluster 

• The £9.4 billion CCUS funding announced in the most recent Spending Review, which includes funding to fill the capacity of HyNet and the East Coast Cluster 

• And recent key milestones including Financial Close on Net Zero Teesside Power and the Northern Endurance Partnership (December 2024), and Liverpool Bay CCS (April 2025). 

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.  

About HyNet  

HyNet plays a central role in delivering reliable low carbon power alongside renewables, and decarbonising vital British industries. HyNet will utilise Liverpool Bay CCS for CO2 transportation and storage, repurposing an existing gas pipeline to capture carbon emitted by industrial plants and permanently lock them away. The transport and storage network, which reached financial close in April 2025, will store up to 4.5 million tonnes of CO2 annually, which is equivalent to taking 2 million cars off the road. 

Today the Department for Energy Security and Net Zero announced a tailored skills programme for oil and gas workers in Aberdeen and Aberdeenshire.

Following the launch, Mark Sommerfield, CCSA UK Director, said:

“The CCSA strongly welcomes today’s announcement to provide tailored support to oil and gas workers in Aberdeen and Aberdeenshire delivered in partnership between the UK Government, Scottish Government and Skills Development Scotland. Providing careers advice and funding for training is a vital step in helping workers move into key growth sectors like hydrogen and CCUS.

The Oil and Gas Transition Training Fund, backed by £900,000 of UK Government funding will help build the pipeline of skilled workers needed to make Britain a clean energy superpower as part of the government’s Plan for Change.

Scaling up CCUS is essential not only for achieving our climate commitments, but also for ensuring a just transition, this includes leveraging the deep expertise of our skilled oil and gas workforce to drive forward clean energy and industrial decarbonisation projects across the country. The CCSA looks forward to working with the Government and industry to bring workers on this journey and help deliver a future energy system that is sustainable, secure, and rooted in local communities.”

Olivia Powis, CEO of the CCSA, commented:

“The investment from the NWF in the Peak Cluster, alongside the companies involved, will support the project to Final Investment Decision. This is the NWF’s first investment in CCUS and recognises the crucial role of carbon capture and storage in securing the future of industries that provide the materials we rely on to build homes, hospitals and schools, while safeguarding jobs and boosting economic growth.”

Notes to Editor 

Interview requests: To interview Mark Sommerfeld, UK Director at the CCSA, please contact sara.price@ccsassociation.org

For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org Press Pack: An FAQ, infographics and an animation accompany the press release for use. Various press items can be found under “CCSA Press Pack” on the CCSA website 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.

The CCSA welcomes the publication of the UK’s Trade Strategy, an important milestone that builds on the Industrial and Infrastructure Strategies to harness the UK’s technological strengths, drive sustainable growth, and boost exports and international investment.

As a Frontier Clean Energy Industry identified in the Government’s Industrial Strategy, the UK’s Carbon Capture, Utilisation and Storage (CCUS) sector is exceptionally well placed to take advantage of new trade opportunities. The UK is already a global leader in innovation, advanced technology, and export-ready services such as CO₂ storage.

The CCSA particularly welcomes key elements of the Strategy that support the clean energy sector, including:

• Increased funding for UK Export Finance
• Mutual recognition of professional qualifications
• Strengthening of clean energy and green trade agreements

These measures will drive economic growth, support high-quality jobs, attract foreign direct investment, and accelerate the UK’s role as a global CCUS leader in the transition to net zero.

Olivia Powis, CEO of the CCSA, said:

“With UK businesses facing tough global trading conditions, the Trade Strategy presents a vital opportunity to unlock our export potential. The UK has world-leading expertise, infrastructure, and export-ready services such as CO₂ storage, meaning that the CCUS sector is well placed to support both domestic growth and international decarbonisation efforts. But Government needs to recognise and work to safeguard our foundational industries – including refining and fuels. By doing so, we can strengthen our clean energy partnerships, unlock investment, and deliver long-term economic and climate benefits.”