CCSA statement celebrating one year from landmark milestone for UK CCUS industry

This time last year, the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power) reached financial close. This gave the green light for the UK’s first major CO₂ transportation and storage network for the East Coast Cluster (ECC) and world’s first gas-fired power station with carbon capture.

To mark the anniversary, Olivia Powis, CEO of the CCSA, said:

“As first movers in UK CCUS deployment, Net Zero Teesside Power and the Northern Endurance Partnership are already supporting local businesses and building the skills and capabilities that future industrial clusters will depend on.”

“It is of utmost importance that we now maximise the current momentum, as seen in Teesside, to deliver carbon capture, utilisation and storage projects. With the right policy and market signals, we can unlock billions of pounds of investment in the UK, to promote economic growth, build a world-class CO₂ storage industry and ensure our foundational industries such as cement, fuels, waste and chemicals remain competitive in the global low-carbon products market.”

Mark Sommerfeld, UK Director of the CCSA, said:

“This licensing round is a crucial step in unlocking the full potential of CCUS to decarbonise industry, create skilled jobs and strengthen the UK’s energy security. Our Delivery Plan highlights the urgent need for both additional CO₂ storage capacity, which will be delivered by this new round, while also ensuring that existing licensed projects are given a clear route to market to complete the development of their stores.”

Following last week’s news of Storegga selling their stake in the Acorn Project, Olivia Powis, CEO of the CCSA, said:

“The Acorn Project provides a critical role in Scotland’s industrial decarbonisation and low carbon future. The CCSA will continue to work closely with the partners involved and the government to support the successful development of Acorn, recognising its vital role in driving regional economic growth. We also welcome the continued commitment from both the UK and Scottish Governments to ensuring its timely progress.”

• New CCSA research shows the UK has made significant progress in advancing its carbon capture, utilisation and storage (CCUS) industry, with the first five major projects now having reached financial close and entering construction in Teesside and the North-West and Wales.
• More than 100 projects that will capture 77Mt of CO₂ per year, and 22 CO₂ storage licences are in development across the UK. Together they would more than meet Government ambitions for CO₂
• While 27 projects have been paused or delayed in the past 2 years, the majority of the UK’s CCUS projects remain active, highlighting the strong underlying demand for this industry that needs to be unlocked.
• Developers remain committed to the UK, but 75% warn they may redirect investment overseas unless the Government provides clear direction and a defined route to market.

[London, 8 December] – New research from the Carbon Capture and Storage Association (CCSA) reveals that the UK now has its strongest ever pipeline of projects developing carbon capture, usage and storage (CCUS), but policy uncertainty is slowing progress, stalling projects and risking investment.

The report provides the 2025 update to the CCSA’s Delivery Plan series and shows that significant momentum has been achieved. The first five major CCUS projects have now reached financial close and entered construction in Teesside and the North-West and North Wales. They are creating local jobs and protecting and future-proofing the UK’s core industries including; cement, energy from waste and low carbon power.

However, there are over 100 other projects in development across the UK, that together than capture and store 77 million tonnes of CO₂ per year – equivalent to roughly the annual emissions of the entire country of Austria. This puts the UK on course to meet ambitions in the Government’s Carbon Budget and Growth Delivery Plan and the Climate Change Committee’s Seventh Carbon Budget, which make clear that there is no credible route to decarbonisation without CCUS.

Over 18 million tonnes of this – equivalent to about the same as 4 million cars driving for a year – will be from carbon removals technologies. These are technologies that remove existing carbon out the atmosphere and store it safely and permanently in geological formations such as depleted oil and gas fields, 1-3km deep below the seabed. These technologies are essential to offset the residual emissions from industries such as agriculture and aviation, that cannot alone reduce their CO₂ emissions to zero.

The research highlights growing challenges. Since 2023, 27 capture projects have been cancelled or paused. Almost all remaining projects have experienced delays averaging 2 years, with 75% of developers saying they may redirect investment overseas without clearer government policy. Developers point to slow decision-making, delayed funding allocations and a lack of a route to market for projects outside government committed clusters.

To avoid further investment leaving the UK, the CCSA stress the importance of delivery in 2026 and urge the Government to set out a route to market for the next projects by; establishing a clear allocation framework for all CCUS project and clusters and accelerating policies that unlock markets for low-carbon products, carbon removals and CO₂ storage. Unlocking these revenue streams will enable the sector to transition to a self-sustaining market.

Without timely action, the UK risks losing not only vital CCUS projects but also the significant economic benefits they underpin. This includes unlocking private investment in our foundation industries, enhancing energy security, delivering a predicted £94 billion boost to the UK economy, and supporting more than 50,000 jobs by 2050.

Speaking at the launch, Minister McDonald emphasised that CCUS will help secure the long-term future of industries such as glass and chemicals. He underlined the Government’s commitment to “getting on with the job of building this new industry,” which is expected to support thousands of jobs across the supply chain.

The Minister noted that construction is already underway on key projects, mentioning in particular Heidelberg Materials’ Padeswood cement facility and the Protos Energy Recovery Facility (ERF) at Ellesmere Port that both reached final close in September. Looking ahead to the next wave of deployment, the Minister confirmed that the Government is working closely with both the Acorn Project and Viking CCS to reach financial close in this parliament, and will soon identify additional projects to connect to the East Coast Cluster.

Following the release of the Delivery Plan, Olivia Powis, CEO of the CCSA, said:

“CCUS represents one of the UK’s greatest industrial, economic and decarbonisation opportunities. This research shows the sector is primed for growth, but only if we create the conditions that allow developers to invest and deploy. With the right decisions in 2026, we can unlock billions in private investment, protect industrial jobs and secure our pathway to net zero. Without that clarity, we risk losing projects and investment to other markets.”

Notes to Editors

• Read the Delivery Plan here: CCUS Delivery Plan Update 2025
• Read the Executive Summary and  ‘CCUS in the UK – at a Glance’ Infographic: Here

• CCSA appoints new Board members with a wealth of European CCUS industry expertise.
• Strengthened leadership will enhance the Association’s European engagement, knowledge sharing and cross-border CCUS offer.
• New appointments position the CCSA to better support members as CO₂ capture, transport and storage markets expand rapidly across Europe.

London, [5 December] – The Carbon Capture and Storage Association (CCSA) today announced the appointment of five new Board members, significantly strengthening the Association’s European expertise as it continues to expand its EEA / UK focus and international engagement.

The new Board members, representing large European CCUS projects, bring extensive experience in business policy, regulation, cross-border CO₂ transport and storage, and the development of CCUS markets across the EU.

Their collective insight will be instrumental in guiding the CCSA’s strategic direction at a time when European climate legislation is driving unprecedented demand for CO₂ transport and storage infrastructure.

This enhanced leadership reflects the CCSA’s commitment to shaping Europe’s evolving CCUS landscape and supporting industries to decarbonise, produce low-carbon products and remain competitive across both the EEA and the UK.

Olivia Powis, CEO of the CCSA, said:

“As CCUS deployment accelerates across both the EEA and the UK, there is an unprecedented opportunity to strengthen collaboration and ensure industry is equipped to meet growing demand for CO₂ transport and storage. Our new Board members bring a wealth of European expertise that will enhance the CCSA’s ability to support members on both sides of the Channel, engage effectively with policymakers, and help position Europe as a global leader in the CCUS market.”

New Board members:

• Phil Hemmens, Special Advisor, Eni [global integrated energy company, with an Italian head office]
• Pieter Tavenier, Director Business Line CCS, N.V. Nederlandse Gasunie [European energy infrastructure company, headquartered in The Netherlands]
• Paolo Testini, Director CCS and Carbon Removal Projects Development, Snam [Italian infrastructure company that operates natural gas transport, storage, and regasification networks]
• Simon Willis, CEO, Heidelberg Materials UK, [supplier of lower carbon heavy building materials to the construction industry, headquartered in Germany]
• Ralph Windeatt*, Group Head of Business Development, ABP [Group of 21 UK ports]

*Re-elected

Mark Sommerfeld, UK Director of the CCSA said:

“The CCSA welcomes GBE’s Strategic Plan, setting out a long-term vision for unlocking the UK’s future energy system. We look forward to working closely with GBE to help deliver a secure, reliable and low-carbon power system. Achieving this will require the full range of clean energy solutions, and CCUS has a vital role to play in providing firm low-carbon power as well as supporting the wider decarbonisation of UK industry. We particularly welcome GB Energy’s focus on strengthening domestic supply chains. The development of CCUS projects presents significant investment opportunities to grow UK content and deliver new regional jobs and economic growth. CCSA looks forward to working with GBE to ensure the investment needed to scale up CCUS is rapidly unlocked and the UK’s capability fully realised.”

To ensure that the UK is able to deliver clean power and energy security, we need to see projects like H2Teesside deployed, however we recognise the reasons for the development not to go ahead given the material change in circumstances. It is encouraging that bp remains committed to other projects in the region, including Net Zero Teesside (NZT) Power and the Northern Endurance Partnership (NEP), and continues to be an active partner in the region.

Following the announcement, CCSA CEO Olivia Powis said: “Projects like H2Teesside are essential for providing low-carbon hydrogen to power industries and help deliver on our climate commitments. It is positive that bp remains committed to other key projects in the region, including Net Zero Teesside (NZT) Power and the Northern Endurance Partnership (NEP), and continues to be an active partner in the region.

As emerging sectors like AI and data-centres grow – along with their increasing demands on the energy system – government must provide clear policies and timely planning decisions to give investors the confidence to advance low-carbon projects. Technologies such as CCUS and hydrogen are vital to providing low-carbon power, as well as delivering clean growth and industrial renewal”

Today, the Chancellor has delivered the Autumn Budget amid ongoing pressure on the UK’s public finances. Yet with the Government reaffirming that CCUS is fundamental to the UK’s low-carbon economy, today’s set of announcements come at a pivotal time for advancing the CCUS sector, accelerating industrial decarbonisation and clean power.

Olivia Powis, CEO of the CCSA, said:

“Today’s Budget and accompanying North Sea Future Plan underscore the vital role of CCUS in the UK’s industrial transition with welcome investment in skills and Grangemouth industrial projects. However, to realise CCUS’s potential, the Government must now act quickly to ensure a managed transition for the North Sea and to protect our industries from further closure – we need urgent action on policy for our refineries and CBAM.  The industry needs a clear route to market for all CCUS clusters and projects to ensure CCUS can drive jobs, supply chain investment, innovation and economic growth for a European-wide CCUS industry.”

In responding to the Department for Energy Security and Net Zero’s update confirming that it intends to launch a new East Coast Cluster (ECC) Teesside selection process in early 2026, Olivia Powis, CEO of the CCSA, said:

“The CCSA welcomes today’s announcement as an important step forward for CCUS – ahead of a pivotal year for the sector. This progress sends a strong signal to industry and investors that the UK is continuing to move from ambition to delivery, building on the commitments that were made at the Spending Review earlier this year. With continued momentum, we can unlock the next wave of projects, accelerate industrial decarbonisation and build a self-sustaining CCUS market that supports growth, energy security and a cleaner future.”