New UK Carbon Capture Investment a Sustainability 'Lifeline'

Governments around the world are ramping up efforts to slash their greenhouse gas emissions. Renewable energies will, of course, be front and centre of these efforts, but it is becoming increasingly apparent that carbon capture and storage (CCS) technologies will also play a major role in the climate fight.

In simple terms, CCS is a climate change technology that encompasses an integrated suite of technologies. When applied, these technologies have the ability to prevent large quantities of CO₂ from being released into the atmosphere, particularly from the use of fossil fuels.

The UK is looking to position itself at the front of the CCS vanguard in an effort to help scale up the technology and fortify its broader net zero strategy. A total of £22bn (US$28.97bn) has been pledged to CCS rollout by the UK government, representing a landmark moment in large-scale adoption of the technology.

Projects in Merseyside and Teesside are set to slash carbon from major industries, aiming at climate change head-on while transitioning the economy to greener pastures and opening up thousands of new jobs.

There's a note of caution, though, with concerns this might mean hanging onto fossil fuels for too long. Prime Minister Sir Keir Starmer champions this investment as a boost for the country's "industrial heartlands", citing its potential to "kickstart growth" in the UK economy.

Industry leaders and experts weigh in on the investment

As expected with any breaking news story of this magnitude, voices from all across the energy sector are flocking offering reactions and opinions.

Neil McCulloch, CEO of Spirit Energy, a joint venture launched between international energy and services company Centrica and German energy and infrastructure firm Stadtwerke München (SWM), believes CCS should be a cornerstone of the energy industry by 2030. He also believes the technology should will be necessary to achieve net zero by 2050.

He says: “It offers a vital lifeline to the hard-to-abate industries that so many UK jobs and livelihoods rely on. This announcement represents a vote of confidence in not only CCS, but the industrial heartlands that stand to benefit from the technology.

“The government must now create a pathway for other mature CCS projects — such as our plans to create a billion tonnes of carbon storage in the depleted gas fields at Morecambe Bay, decarbonising 40% of the UK’s cement and lime industry. 

“It’s only by unlocking further private investment that the government delivers growth, clean energy and a bright future for the UK’s industrial heartlands, without the need for significant upfront taxpayer money.”

Aniruddha Sharma from Carbon Clean hails the government's hefty CCS investment as a critical nod to the sector within Labour's early days.

He points out the urgent need for a solid policy foundation to leverage industrial decarbonisation as a growth and jobs engine. Incentives pulling in private sector funds for cutting-edge CCS projects are vital, Sharma stresses, along with measures to boost local manufacturing and global tech exports.

"The government’s £22bn investment in UK CCS projects is welcome news, particularly within Labour’s first 100 days in office. It’s the positive signal the country’s highly innovative CCS sector needs.

“A stable, predictable policy framework is an essential building block for growth. Industrial decarbonisation is a powerful lever to turbocharge the economy and create thousands of jobs. 

“Key to this are incentives that crowd-in private sector funding for pioneering first-of-a-kind (FOAK) projects that accelerate the commercialisation of highly-innovative technologies, such as CCS.

“Government initiatives that strengthen local supply chains and establish UK-based manufacturing facilities are also needed so that homegrown technology can be exported globally. The clean energy transition must be viewed as a catalyst for economic transition. 

“The opportunity is huge and, with the right support, the UK is well positioned to lead.”

GE Vernova's Craig Jones also praises the support for CCS from the UK Government, underlining its pivotal role in the energy transition, highlighted by their work on the world's first commercial carbon capture system for gas power at Net Zero Teesside. 

He says: “The deployment of carbon capture, utilisation and storage will play an essential role in the UK’s energy transition. GE Vernova welcomes the commitment from the government today to invest in the development of this technology.

“In the UK, we have been selected to supply the turbines for the world’s first commercial carbon capture system for gas power at Net Zero Teesside, working together with Technip and bp. 

“Projects such as this can bolster the UK’s role in the global energy transition, stimulate economic growth and enhance energy security.”

Could CCS be pivotal in halting climate change?

Advisors from the UK's Climate Change Committee (CCC), as well as United Nations scientists, regard CCS as an instrumental tool in the global charge towards net zero.

With the clock ticking towards 2050, technologies enabling CCS are flagged by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) not just as game-changers in reducing emissions but as necessary advances in the green revolution, aligning with the Paris Agreement's 1.5°C objective.

With over 700 CCUS projects - an advanced CCS version that finds practical applications for the captured carbon - in the pipeline, the opportunity to trap over 50Mt of CO₂ per year is on the horizon. Whilst this is only represents c. 0.13% of global carbon emissions, there is hope that the technology's use and impact will snowball over the coming years.

Moreover, as Dr. Fatih Birol of the IEA suggests, CCS will be one of many weapons in the global arsenal when it comes to fighting climate change.

He says: "The scale of the climate challenge means we need to act across a wide range of energy technologies. Carbon capture is critical for ensuring our transitions to clean energy are secure and sustainable.”

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