CCSA Calls for Sustained Momentum on CCUS Clusters to Secure Jobs and Net Zero Targets

[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: :

• Evolve existing business models to ensure continuity, adapt to changing conditions, and strategically allocate support—enabling a market-led CCUS sector while maintaining necessary public backing.
• Improved market integration between capture projects and end markets.
• Support for innovation, including low-carbon product standards and Greenhouse Gas Removal (GGR) frameworks.
• Greater risk accepted by the private sector in return for appropriate financial returns to ease reliance on public funding for CO₂ transport and storage.
• More certainty around funding timelines and streamlined planning and permitting processes.

To ensure CCUS evolves into a sustainable, market-led sector, the report recommends:

• Clarifying the role of Government in long-term CCUS policy, regulation, and funding—moving toward reduced subsidies as markets mature.
• Improving value chain economics by strengthening carbon pricing, developing low-carbon product standards, and leveraging carbon dioxide removal market signals, with effective regulation where appropriate.
• Increasing pace and scale of delivery for CO₂ transport and storage through more flexible, commercially-led models—including non-pipeline options, cross-border storage and reduced regulatory barriers for expansion.

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

The Tony Blair Institute recently published a report highlighting the need for carbon capture and storage in tackling climate change.

Following the release of the report, Mark Sommerfeld, CCSA UK Director, said:

“The Tony Blair Institute is absolutely right in its recognition of the vital role of carbon capture and storage. It will enable British industries to decarbonise by capturing process emissions, as well as generate low-carbon dispatchable power to complement renewables, and through engineered removals see greenhouse gases actively taken out of the atmosphere.”

“With ambitious climate targets that must be met, it’s important that all pathways and technologies are utilised. By doing so, we combat climate change and create a market for low-carbon products such as sustainable aviation fuel and cement to build homes. CCUS enables UK industries to decarbonise and grow, protecting and creating jobs, which is critical to bringing communities along on the net zero transition.”

“Much progress has been made recently to deploy CCUS across the UK’s industrial heartland and it’s important that momentum is maintained. The Government now needs to build on recent success by progressing Track-1 expansion, advance Track-2 selections and support all other clusters and projects that can be deployed on a similar timeline. Acting now will not only reduce future costs but also secure the UK’s position as a global leader in CCUS.”

Following publication of the Public Accounts Committee’s report into Government support for Biomass, please see below for a statement from the CCSA.

Mark Sommerfeld, UK Director, said:

“As the UK strives for energy security and net zero, Carbon Capture, Utilisation and Storage (CCUS) technologies, including Bioenergy with Carbon Capture and Storage (BECCS), are essential. Climate scenarios from the UN’s Intergovernmental Panel on Climate Change (IPCC), the UK’s Climate Change Committee (CCC), and the International Energy Agency all highlight the critical role of sustainable biomass in achieving climate goals. The CCC reaffirmed this in its advice for the Seventh Carbon Budget, which called for 21 MtCO₂ of engineered removals by 2040, with BECCS expected to deliver the largest share.”

“The CCSA and industry fully support placing sustainability at the core of BECCS deployment. The sector adheres to internationally recognised carbon accounting methodologies and science-based standards to ensure robust sustainability governance. These frameworks are verified through independent certification schemes—such as the Sustainable Biomass Program (SBP)—which often exceed even government requirements. The industry has also welcomed the Government’s commitment to evolving these governance frameworks and remains eager to collaborate on advancing this vital area.”

“The biomass sector is clear: the future lies in the successful delivery of sustainable BECCS. The long-term goal is to establish a self-sustaining market where carbon removals are driven by market demand rather than government support. However, to reach this point, urgent decisions are needed in the upcoming Spending Review to enable the progression of Track 2 and Track 1 expansion projects, along with others delivering on similar timeframes. Now is the time to ensure BECCS, alongside other CCS applications, is advanced in the right way—maximising its contribution to the UK’s net zero ambitions.”

• The CCSA congratulates Eni and the Government taking financial close on the Liverpool Bay Carbon Capture and Storage (CCS) project – a landmark for the CCUS industry and a critical step to advance the HyNet CCS Cluster, as well as protect and create new industrial jobs in the North West.
• Eni’s Transportation & Storage infrastructure will enable local industries to decarbonise, helping reverse the trend of industrial closures and downsizes in the region in recent years.
• CCSA welcomes the UK Government’s continued progress in delivering CCUS and hope to see this momentum maintained across UK industrial heartlands.

[London, 24 April] Eni has reached financial close on its Liverpool Bay CCS project – a cornerstone of the HyNet CCS Cluster that will store CO₂ from industry in Eni’s depleted gas fields in the Irish Sea.

This huge achievement ensures critical infrastructure will now be in place to safeguard jobs, attract investment, and revitalise industry in the North West of England and North Wales. This will help transform one of the UK’s most energy-intensive industrial regions into one of the world’s first low-carbon industrial clusters. With financial close now achieved, the Liverpool Bay CCS project enters the construction phase – unlocking investment in local UK supply chains and creating an estimated 2,000 jobs during this phase alone.

The Carbon Capture and Storage Association (CCSA) welcomes this monumental achievement towards the deployment of Carbon Capture, Utilisation and Storage (CCUS) across the North of Wales and North West of England, prioritising the region’s industrial future while advancing the UK’s broader energy security goals.

HyNet will enable manufacturers to cut emissions, generate clean power and produce low-carbon hydrogen. With Eni’s transport and storage infrastructure now financially secured, vital projects – such as EET Hydrogen’s 350-MW low-carbon hydrogen plant, Encyclis and Viridor’s CCS-enabled Energy-from-Waste facilities, and Heidelberg Materials Padeswood’s cement plant – can move forward.

Eni, as the operator of the CO₂ transport and storage system, will deliver the infrastructure that underpins the cluster – including over 180 kilometres of pipelines and repurposed offshore platforms, connecting regional industries that can capture their CO₂ and permanently store it in depleted natural gas reservoirs, located offshore under the seabed in Liverpool Bay.

Eni’s Liverpool Bay CCS project is expected to permanently store 4.5 million tonnes of CO₂ annually in its first phase, scaling up to 10 million tonnes by 2030. By 2035, the cluster could support 6,000 long-term jobs across the region.

Today’s progress underlines the UK’s global leadership in industrial decarbonisation, as part of the UK Government’s commitment to CCUS deployment.  The Government can now capitalise on this momentum within the upcoming Spending Review to maximise the growth opportunities presented by CCUS for the UK. This includes advancing the next clusters and projects and putting in place the right market framework to deploy the industry at scale. CCSA analysis shows delivering all clusters could support 50,000+ jobs nationwide and unlock £26bn in private investment by 2050, making it a critical component for realising the Government’s growth agenda and forthcoming industrial Strategy.

Olivia Powis, CEO of the CCSA said:

“This is a pivotal moment for the North West. Eni’s Liverpool Bay CCS project in HyNet is a huge step forward for the CCUS industry and demonstrates the UK’s global leadership in industrial decarbonisation. It will protect vital industries and provide product security, create and protect skilled local jobs, and position the region at the forefront of the low-carbon economy. The focus can shift to delivery – getting spades in the ground, connecting industry, and capturing CO₂.”

“Capitalising on this well-earned momentum is equally essential. This means advancing the next CCUS clusters and projects and providing a route to market for further projects across the UK. These steps will unlock the full growth potential of deploying CCUS at scale, including the potential for 50,000 jobs centred in our declining industrial heartlands. At the same time, it will enhance energy security, drive progress toward net zero targets, and be the central backbone to the UK’s Industrial Strategy.”

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. Download the press pack here.
• Eni’s official announcement on the Liverpool Bay CCS project financial close is available here.
• The UK Government’s statement on its commitment to advancing CCUS infrastructure is available 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 Carbon Capture and Storage Association (CCSA) welcomes the Government’s intervention to safeguard British Steel’s Scunthorpe plant, protecting jobs and UK manufacturing. However, the long-term success of UK manufacturing industries hinges on accelerating Carbon Capture, Utilisation, and Storage (CCUS) deployment to decarbonise steel and other foundation industries.

Hard-to-abate sectors, including steel, cement and chemicals account for ~14% of UK emissions. For steel, CCUS offers a viable pathway to retain primary production while cutting emissions. Previous pilots, including British Steel’s collaboration to convert captured CO₂ into transport fuels, prove this potential. The Climate Change Committee stresses that 50–60 million tonnes of CO₂ must be captured annually by 2035 to meet carbon budgets. Without rapid CCUS progress, the UK risks losing its industrial expertise and capability – a blow to both economy and climate goals.

Statement from Olivia Powis, CCSA CEO:

“The CCSA welcomes the Government’s intervention to secure the future of the steel blast furnace in Scunthorpe, underscoring the vital importance of protecting critical industries and the thousands of jobs they support in the context of the energy transition.”

“This urgent action reinforces the need for clear and timely policy decisions to safeguard industrial sectors across the UK. A competitive and sustainable steel industry must be equipped with the technologies required to deliver affordable, low-carbon domestic production. This equally applies to other foundational industries—such as cement and chemicals—where the rapid deployment of CCUS will play an essential role in preventing the decline of these sectors and unlock substantial growth opportunities for the UK.”

“CCUS is not optional—it is a key technology to preserve the UK’s industrial heartlands and achieve net zero. With the Spending Review approaching, the Government must fast-track CCUS deployment to drive growth, demonstrate climate leadership, and protect livelihoods.”

The CCSA welcomes the launch of the Independent Review of Greenhouse Gas Removals (GGR), Chaired by Dr Alan Whitehead CBE.

Olivia Powis, CEO of the CCSA said:

“GGR technologies are critical for addressing the climate crisis. They are required alongside the deployment of CCUS, which the UK Government has already made significant progress on deploying in Merseyside and Teesside.”

“This Review is important for accelerating progress on the construction of large-scale GGR projects. While much work has already been undertaken by the industry and Government to develop policies and GGR business models, through Dr Alan Whitehead’s leadership this Review has the potential to significantly move the industry forwards, and the industry stands ready to engage with the Review to ensure its success.”

“While this Review is being carried out, the shortlisting and progressing GGR projects, including the GGR/Power BECCS business models, must continue. Any slowdown has a serious impact on the absolute need to meet net zero targets.”

In response to reports that British Steel will be closing their blast furnaces at Scunthorpe, please see below for a statement from the Carbon Capture and Storage Association (CCSA). We feel that this is a missed opportunity to deploy Carbon Capture, Utilisation and Storage (CCUS) which could have protected these important jobs and retained UK steel making capabilities.

Olivia Powis, CEO of the CCSA, said:

“For industrial towns like Scunthorpe, proximity to CCUS clusters such as Viking CCS and the Northern Endurance Partnership (NEP) Track-1 Expansion in the Humber can provide a lifeline to businesses seeking to decarbonise and keep operations going. News that British Steel, who need to transition to a greener form of steel production, could close their blast furnaces at Scunthorpe poses a real blow to UK steel and wider manufacturing capabilities.”

“Transitioning industries, including UK steel, to low-carbon operations is vital for their long-term viability and competitiveness in the global low-carbon products market. Industry has been ready and waiting to deploy CCUS for a number of years and if faster progress had been made by all governments, these jobs in the UK’s industrial heartlands could have been protected and the sustainability of critical manufacturing outputs secured.”

“While electric arc has been discussed for steel production, carbon capture is a clear and valid option, but the infrastructure needs to be approved and in place to do this. British Steel successfully undertook a mobile carbon capture pilot plant at their Central Power Station in Scunthorpe with the University of Sheffield, developing transport fuels from the captured CO₂. It is a missed opportunity to not do this at scale and retain production of virgin steel in the UK. We are facing a real risk of the UK finding itself the only G7 country without domestic steelmaking ability. To retain the UK’s skilled industrial workforce, blast furnaces with carbon capture, utilisation and storage should continue to be under consideration.”

The CCSA welcomes the National Wealth Fund’s (NWF) commitment to investing in carbon capture projects, as outlined in the Government’s Statement of Strategic Priorities.

Following the announcement, CCSA CEO, Olivia Powis, said:

“Confirmation that the National Wealth Fund will be investing in carbon capture projects provides an additional boost to the private capital already invested by the sector in projects across the UK. CCUS is a vital aspect of the Government’s Plan for Change and will play a central role in enabling Clean Power by 2030, 81% emissions reductions by 2035 and net zero by 2050.”

“It is also a growth enabler, and we anticipate that the sector could generate over 50,000 jobs, attract £26bn in private investment, and contribute £94bn in GVA by 2050. It’s therefore important that pace is maintained on deployment as we need capture plants to be operational as soon as possible.”

Today, Chancellor of the Exchequer, Rachel Reeves MP, delivered the UK Government’s Spring Statement, against the backdrop of slow economic growth, reduced fiscal headroom and challenging geopolitical developments on trade.

In response to the Spring Statement our UK Director, Mark Sommerfield, said:

“The Chancellor’s focus in the Spring Statement on delivering economic growth – through planning reform and delivery of skills in the construction sector – will be important for advancing the CCUS industry.”

“We need a planning system that doesn’t unduly hinder the rollout of the CCUS projects. While additional capacity and skills in the construction sector will be vital for energy infrastructure projects, ensuring that CCUS clusters are delivered on schedule to meet our climate targets.”

“However, for the UK to maintain a competitive edge in CCUS deployment, the Government must urgently provide long-awaited updates on project selection for Track-2, Track-1 expansion, and other CCUS projects capable of deploying on similar timelines.”

“Decisive action now will enable the UK to achieve clean power by 2030, reduce emissions by 81% by 2035, and, crucially, reach net zero by 2050.”

The CCSA’s CEO Olivia Powis responds to the Conservative Party’s revised position on net zero. This follows Party Leader Kemi Badenoch’s speech where she put forward that it would be “impossible” for the UK to reach net zero by 2050 and subsequent commentary from climate champions rebutting the change of position.

Read Olivia’s full response below:

“Net zero by 2050 is absolutely achievable and will drive economic growth, particularly through technologies such as Carbon Capture, Utilisation and Storage (CCUS). Legislating on net zero has driven investment – and despite pressures on financing, global investment in clean energy was set to reach USD 2 trillion in 2024 almost double the amount going to fossil fuels. In 2015, the ratio of clean power to unabated fossil fuel power investments was roughly 2:1 and in 2024, this ratio was set to reach 10:1. Having a clear target galvanises action and investments in a low carbon economy, which will benefit industry, civil society and our local industrial regions.”

“Net zero is crucial not only for tackling climate change but generating economic growth. Our analysis shows that by delivering all CCUS clusters and projects across the UK, over 50,000 jobs could be generated, £26bn in private investment attracted into the UK and £94bn in GVA contributed by 2050.”

“It is through the deployment of technologies like CCUS that the UK will be able to scale up domestic energy production, safeguard our foundational industries and produce low-carbon projects for the global market, all by 2050. It has been encouraging that leading Conservative climate champions such as Rt Hon Chris Skidmore, former Energy Minster, and John Gummer, Rt Hon The Lord Deben, former Chair of the Climate Change Committee, continue to emphasise the need to stay the course on net zero. The scientific evidence is clear on why it’s needed and if the UK economy is to grow, demonstrating climate leadership in action will continue to attract significant sums of green investment.”