UK CCUS Supply Chain Opportunities

The UK government is taking steps to deliver on its strategy and vision of developing a commercial and competitive Carbon Capture, Usage and Storage (CCUS) market. CCUS will play a role in decarbonizing hard-to-abate industries in the UK (e.g., heavy-duty trucking, iron and steel, chemicals). The UK Department of Energy Security and Net Zero (DESNZ) is currently seeking input on 1) business models to attract and support investment in industrial carbon capture and 2) non-pipeline transport value chains and cross-border carbon transport and storage networks.

With a geological storage potential of over 78 billion tons of storage under its seabed, the UK is actively pursuing its vision of becoming a key global player in CCUS sector. The UK’s carbon capture plans are based on a regional cluster system, where groups of projects in industrial areas would share infrastructure. To date, the UK government has named four CCUS clusters in England and Scotland to receive government support.

The four CCUS clusters are: HyNet in Northwest England and North Wales, East Coast Cluster in Northeast England, Acorn in Northeast Scotland and Viking in East England.

U.S. companies can help shape each cluster’s projects and potential business prospects by responding to calls for evidence and getting involved early in ongoing consultations and identifying supply chain opportunities directly with UK officials before the final investment decisions are made.

As DESNZ builds the structures and systems to support the evolving CCUS market, the government continues to consult and respond to feedback from stakeholders. For example, DESNZ recently published an update to the industrial carbon capture business models. The industrial carbon capture (ICC) business models aim to attract private investment and scale up deployment by industrial users who may not have other viable options to achieve deep decarbonization.

To provide input into the proposed business models, U.S. firms and investors can email DESNZ directly at: ICCbusinessmodels@energysecurity.gov.uk.

In addition, DESNZ is now seeking evidence on deploying non-pipeline transport (NPT) and cross-border carbon dioxide networks. NPT in the CCUS context is the transportation of carbon dioxide (CO2) using road, rail, barge, and/or shipping. The UK seeks to expand non-pipeline solutions to facilitate decarbonization across multiple parts of the country and sectors of the economy where pipelines are not feasible. This consultation seeks input on CO2 transport from network development companies, supply chain companies, trade bodies, academics, and prospective investors interested in future business opportunities.

To respond to the inquiry on CO2 non-pipeline transport and cross-border networks, due by July 16, 2024, see the Carbon capture, usage and storage (CCUS) web page. 

For more information on CCUS in the UK, please contact Rachel Fefer at rachel.fefer@trade.gov.