May 2026 DECARBONISATI N TECHNOLOGY May 2023 Decarbonisati n Technolo gy Powering the Transition to Sustainable Fuels & Energy
UTILISATION OF CAPTURED CARBON RENEWABLE HYDROGEN & HYDROGEN SAFETY CAPTURED CARBON: AN EMERGING ECONOMY BUSINESS CASE FOR DECARBONISATION
DECARBONISATION OF REFINING VALUE CHAINS PARTNERING FOR INDUSTRIAL DECARBONISATION
SUSTAINABLE AVIATION AND MARINE FUELS GEOTHERMAL ENERGY & DAC
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Contents
May 2026
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Industrial decarbonisation via cross-sector partnerships Maurits van Tol Johnson Matthey
11 CCUS has the potential to revitalise industrial heartlands Olivia Powis Carbon Capture and Storage Association (CCSA)
17 Cost-effective CO 2 sourcing for utilisation and sequestration Stephen B Harrison sbh4 Consulting
23 Ammonia safety management
Gu Hai American Bureau of Shipping (ABS)
28 Turning decarbonisation options into board-ready decisions Andrew Last, Tracy Sadowski, and Scott Sayles Becht
35 Reliable energy generation via renewable energy sources Duygu Disci and Berthold Otzisk Kurita Europe Mohamed Hudhaifa Kurita AquaChemie
42 Clean conversion dilemma for legacy ammonia plants VK Arora Kinetics Process Improvements, Inc. (KPI)
50 Africa’s Rift Valley: ideal location for DAC projects Khamis Mwalwati Muniru Octavia Carbon Antti Heikkilä and Samy Oumaziz Vaisala
54 CO₂ capture screening device for sorbent optimisation Andreas Sundermann, Charlotte Langheck, and Robert Baumgarten hte GmbH
60 Automation: the true enabler of energy expansion Per Erik Holsten ABB’s Energy Industries division
© 2026. The entire content of this publication is protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior permission of the copyright owner. The opinions and views expressed by the authors in this publication are not necessarily those of the editor or publisher and while every care has been taken in the preparation of all material included the publisher cannot be held responsible for any statements, opinions or views or for any inaccuracies.
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The three pillars of the energy transition are decarbonisation, energy security, and affordability. Decarbonisation simply refers to the transition to renewable energy sources to reduce our net emissions of carbon dioxide to zero. A longer-term objective for decarbonisation is to draw down sufficient carbon dioxide from the atmosphere to stabilise our climate. In 2022, the Russian invasion of Ukraine prompted the EU to reduce its reliance on imports of Russian natural gas. This year, the disruption in oil supplies and damage to energy infrastructure across the Middle East as a result of the Israeli/US attacks on Iran have brought the issue of energy security to the attention of the public worldwide. However, energy security has been a concern since the original sanctions imposed on Iran in attempts to halt its uranium enrichment programme, initially by the US and then, from 2006, by the United Nations. The energy transition will result in a globally diversified energy system, with different regions and countries investing in domestic renewable resources. This should lead to both decarbonisation of energy supply and greater energy security. There is no one-size-fits-all solution; different regions will have different balances between solar, wind, hydro, geothermal, and nuclear power as the primary sources for renewable electricity supply, supported by renewable biomass, waste to energy, and e-fuels for chemicals and transport fuels. The balance between domestic production and imports of oil and gas, refined fuels, and chemicals, from renewable and fossil sources, is already changing and will reshape the international trade in such energy carriers. Countries and regions that are leading the transition appear to be more resilient in both energy security and energy cost. The International Renewable Energy Agency (IRENA) reported that in 2025, renewable energy additions comprised 85% of capacity expansions. However, it is important to note that many countries are now facing long waiting times for renewable projects to be connected to the electricity grid, indicating that grid readiness must be addressed. Hence, affordability is not just about low cost. Currently, the volatility in oil prices due to conflict in the Middle East impacts everyone. We are increasingly seeing the economic (and social) damage caused by global warming and changing weather patterns. In regions such as the EU, now in the fourth phase of its Emissions Trading System, the price of carbon (emissions) is factored in and has become a driver for the transition. In the short term, the investment required to build new energy infrastructure means renewable energy will be more costly. However, in the long run, a diversified energy system will deliver decarbonisation, improved energy security, and a more affordable energy system. We feature articles from companies, institutions, and collaborations that have developed and are now deploying the technologies needed in the transition. As it achieves scale, renewable energy is becoming more affordable. Robin Nelson
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Industrial decarbonisation via cross-sector partnerships Effective partnerships will be key to making low-carbon fuels the foundation of a decarbonised industrial economy
Maurits van Tol Johnson Matthey
I ndustrial decarbonisation in fuels is no longer constrained by chemistry. The real challenge lies in structuring partnerships that align engineering, feedstock security, and long-term finance in ways that can withstand commercial reality and deliver projects at scale. Industrial decarbonisation is frequently presented as a search for technological breakthrough. That framing is increasingly outdated. The chemical pathways required to produce low-carbon fuels and hydrogen are well established. Gasification, autothermal reforming, reverse-water-gas-shift, Fischer-Tropsch synthesis, methanol synthesis, carbon capture, and hydrogen production are not experimental concepts. They are industrial processes with decades of operating history. Catalysts continue to evolve in activity and durability. Modularisation improves construction predictability. Digital tools enhance operational control and efficiency. The constraint today is not chemistry. It is coordination. Fuel-based decarbonisation now depends on whether engineering, feedstock strategy, finance, insurance, and policy can be aligned from the outset. Projects do not fail because the reactor design is fundamentally flawed. They fail because contracts lack durability, feedstock risk is underestimated, performance guarantees are misaligned, or policy frameworks shift faster than capital can respond. Industrial decarbonisation has therefore become as much an exercise in institutional engineering as in chemical engineering.
relatively stable and linear value chains. Fossil feedstocks were extracted, transported, refined, and distributed through mature infrastructure networks. Risk allocation between upstream producers, refiners, and customers was well understood. Capital providers recognised the asset class and the revenue model. Low-carbon fuels disrupt that structure. A sustainable aviation fuel (SAF) facility today, for example, may depend on agricultural residue collection, municipal waste aggregation, renewable electricity procurement, hydrogen production, carbon capture, syngas generation, catalytic upgrading, airline offtake agreements, and lifecycle carbon accounting. Each element “ Engineering performance at the unit level is no longer sufficient. What determines success is integration performance across the entire value chain ” sits within a different industrial and regulatory domain. Each introduces a new interface. Engineering performance at the unit level is no longer sufficient. What determines success is integration performance across the entire value chain. Syngas-based platforms illustrate this clearly. The underlying principle remains straightforward. Convert a carbon-containing feedstock into synthesis gas. Adjust its hydrogen-to-carbon monoxide ratio. Convert that syngas into fuels, methanol, or other base chemicals. This is industrial logic that has been proven repeatedly over decades.
From linear value chains to integrated ecosystems Traditional fuel systems operated within
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What has changed is the diversity of feedstocks and the number of stakeholders required to make projects viable. Biomass, municipal solid waste, and carbon dioxide (CO 2 ) introduce variability. Renewable hydrogen introduces dependency on power markets. Certification frameworks introduce regulatory complexity. Each additional layer increases the importance of structured coordination. When gasification, reforming, synthesis, and upgrading are treated as separate licensed packages, interface risk grows. Design assumptions diverge, contingency allowances increase, schedule risk increases, and financing costs follow. When these elements are engineered as an integrated platform, with aligned guarantees and shared accountability, uncertainty falls. Engineering integration reduces financial risk and strengthens bankability. Tripartite constraint In practice, projects that struggle to reach final investment decision (FID) tend to falter in one of three areas: technology readiness, feedstock security, or financing structure. These three pillars form a tripartite constraint. Remove or weaken one, and the project stalls. Technology must be proven at a relevant scale and supported by credible performance guarantees. Feedstock must be secured in both quantity and quality, with resilient logistics and clear contractual frameworks. Financing must be structured around long-term revenue certainty that matches capital intensity. There is substantial capital available globally for energy transition investment. The bottleneck is not liquidity, it is predictability. Lenders and institutional investors require stable offtake agreements extending for 10 to 15 years to support non-recourse project finance. Without that visibility, the cost of capital increases materially. Engineering decisions directly influence this “ There is substantial capital available globally for energy transition investment. The bottleneck is not liquidity. It is predictability ”
financial reality. Capital expenditure sensitivity is significant. Even modest increases in Capex can materially shift levelised fuel cost. Multi-stage pathways introduce interface risk, driving higher contingency allowances and greater schedule uncertainty. Schedule delays affect internal rate of return assumptions and debt servicing models. Integrated engineering platforms materially reduce these uncertainties. Modularisation shortens construction schedules. Standardised configurations improve repeatability and insurability. Alignment between licensors and engineering, procurement and construction (EPC) contractors reduces interface risk. Evolving role of the technology partner In this environment, we have seen our role as a technology partner change fundamentally. Historically, licensors could provide a discrete unit operation and step back. Today, in complex decarbonisation projects, that approach is insufficient. The technology partner must help reduce systemic risk across the configuration. This requires early involvement in front-end engineering. Gasification, reforming, synthesis, and upgrading design parameters must be aligned from the outset. Hydrogen integration assumptions must be fully aligned with syngas balance and downstream requirements. Feedstock variability must be understood in terms of downstream catalyst performance and product quality. Modularisation strategies must be incorporated to reduce schedule and construction risk. It also requires long-term commitment. Sustainable fuel plants must operate reliably over decades, often processing variable feedstocks. Catalyst development does not stop at commissioning. Continuous optimisation is essential. Engineering integration is therefore inseparable from financial structuring. In this context, industrial heritage becomes strategically important. Technologies rooted in decades of reforming, synthesis, and catalyst development experience carry a different risk profile from laboratory-scale innovations. Operational data across multiple geographies builds confidence. The ability to stand behind performance at scale lowers perceived risk for financiers and insurers.
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Technology strength, when framed as industrial robustness and lifecycle commitment, is not promotional. It is structural to workable partnerships. Feedstock security as a design discipline Feedstock flexibility is a strategic advantage, but it must be engineered deliberately. A feedstock-agnostic syngas platform can process biomass residues, municipal solid waste, CO 2 , and natural
waste oils through hydrotreated esters and fatty acid (HEFA) processes. These were pragmatic starting points. However, feedstock limitations are evident. Policymakers in Europe have introduced caps on HEFA volumes, accelerating diversification towards advanced routes. Advanced pathways based on syngas platforms require integration of hydrogen production, carbon capture, and catalytic upgrading. Synthetic fuels projects that combine renewable hydrogen with captured CO 2 and convert that mixture into drop- in fuels demonstrate that power-to-liquids configurations are moving beyond commercial deployment. The importance of these projects lies not only in chemistry but in partnership alignment. Energy companies, technology providers, and engineering partners operate within supportive policy frameworks. Demonstration plants provide operational data, operational data reduces perceived technology risk, and reduced risk enables financing. Demonstration projects are therefore institutional milestones as much as technical ones. Demand, risk and financial architecture Airlines have evolved from passive customers into structural partners in SAF deployment. Large airline groups are centralising procurement and entering long-term offtake agreements extending beyond a decade. These contracts provide the revenue certainty required for project finance. Aggregated procurement
gas. This flexibility increases resilience against supply fluctuations and regional constraints. In India, agricultural residues that are currently burned in fields could become valuable feedstocks for SAF. In other regions, forestry residues present a similar opportunity. Municipal waste streams, when treated as feedstock rather than waste, strengthen circular economy models and create economic incentives for collection and sorting. However, variability in feedstock composition affects gasifier performance, syngas cleaning requirements, and downstream catalyst life. Moisture content, ash composition, and trace contaminants must be managed. Contracts must define quality tolerances. Supply chains must be secured early. Digital monitoring and robust catalyst systems mitigate variability but cannot compensate for poorly structured upstream agreements. Projects that treat feedstock as an afterthought frequently encounter delays between feasibility and FID. Projects that embed feedstock strategy within engineering design and financing structures are far more resilient. SAF as a stress test Aviation provides a clear stress test for partnership models. Aircraft fleets represent long-duration capital assets. SAF is the most immediate pathway to reduce lifecycle emissions at scale without waiting for disruptive propulsion technologies. The first generation of SAF relied heavily on
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Johnson Matthey, provide performance guarantees supported by industrial experience. Insurers diversify performance exposure. Investors focus on structured revenue streams. Clear risk allocation strengthens partnership models and accelerates FID. Hydrogen integration and infrastructure governance Industrial decarbonisation increasingly unfolds at cluster scale rather than plant by plant. Hydrogen
models reduce negotiation complexity and create scale for developers. Policy clarity remains fundamental. Mandates, blending requirements, and carbon pricing frameworks create demand visibility. Without durable policy signals, long-term commitments become more cautious. Early engagement between airlines, developers, and technology partners improves alignment across sustainability criteria, feedstock sourcing, and commercial structures. Demand-side participation must occur early in project development, not after engineering decisions are finalised. Demand certainty, however, is only one part of the financing architecture. Insurance and structured risk transfer now play an equally critical role. First-of-a-kind (FOAK) facilities carry performance and technology risk. Insurers prefer repeatable, well-understood configurations. Engaging insurers during the design phase allows process configurations and mitigation strategies to be assessed in detail. Technology performance insurance and credit instruments can transfer selected risks from investors to insurers, improving bankability. However, not all risks are transferable. Feedstock volatility and certain policy risks remain structural. The principle remains clear. Risk should reside with the party best equipped to manage it. Developers mitigate operational risk through engineering. Technology partners, such as
production, carbon capture, methanol synthesis, and fuel upgrading co-locate within industrial corridors. Shared CO 2 pipelines and hydrogen infrastructure reduce capital intensity and enable phased scaling. Common utilities improve efficiency and resilience. Regions pursuing circular carbon economy frameworks demonstrate how syngas- based technologies provide flexibility across feedstocks. Blue and green hydrogen can coexist pragmatically during transition. Captured CO 2 becomes a feedstock rather than a waste stream. Cluster governance introduces complexity. Ownership of shared pipelines, liability allocation for storage, and expansion rights for new participants must be clearly defined. Without governance clarity, infrastructure development lags industrial ambition. Again, coordination determines pace. A further structural challenge sits within hydrogen itself. Many advanced fuel pathways rely on renewable hydrogen, whether for power-to-liquids configurations or for upgrading biogenic syngas. Hydrogen cost is therefore not simply a feedstock variable, it is a system variable. Electrolytic hydrogen production ties fuel economics directly to electricity markets. Variability in renewable power availability affects load factors, capital utilisation, and levelised hydrogen cost. Grid constraints, transmission build-out, and storage availability become indirect determinants of synthetic fuel competitiveness.
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This introduces another coordination layer. Fuel developers must now engage with power developers, grid operators, and storage providers. Long-term power purchase agreements influence hydrogen economics in the same way that offtake agreements influence fuel bankability. Curtailment risk, balancing costs, and certification of renewable origin all affect final project economics. Where hydrogen supply is unstable or expensive, downstream fuel projects struggle to reach FID. Where hydrogen integration is structured early, and electricity pricing risk is managed through durable contracts, capital confidence improves. In this sense, industrial decarbonisation in fuels is inseparable from power system design, and the molecule and the electron must be aligned. Scaling, standardisation, and market integrity Sustainable fuels compete against a fossil system that has been optimised over more than a century. On pure cost today, many advanced pathways require policy support. Scale is the most powerful lever for cost reduction. Larger facilities, repeated builds, and global supply chains drive learning curves. Modularisation accelerates replication. Standardisation reduces engineering effort and contingency allowances. Policy instruments such as mandates, incentives, and contracts for difference create early demand and revenue stability. Over time, as capacity grows and operational experience accumulates, reliance on support can decline. The experience of renewable electricity demonstrates how clear frameworks, industrial scaling, and systematic learning can deliver dramatic cost reductions. Sustainable fuels can follow a similar trajectory, provided stakeholders insufficient. For low-carbon fuels to become globally tradable commodities, certification integrity, and harmonised carbon accounting are equally critical. SAF and synthetic hydrocarbons are increasingly traded across borders. Yet lifecycle assessment methodologies, carbon intensity thresholds, and sustainability criteria still vary align early and commit consistently. Scale reduces cost. But scale alone is
between jurisdictions. Differences in accounting treatment for biogenic carbon, captured CO 2 , renewable electricity sourcing, and indirect land use can materially alter project economics. For developers and financiers, this introduces regulatory risk. A project structured under one certification framework may find its product discounted or ineligible under another. For airlines and end users operating globally, fragmented standards increase complexity and administrative burden. Harmonisation does not require uniform policy, but it does require mutual recognition and transparent methodologies. Clear and durable carbon accounting rules provide the confidence required for long-term offtake agreements and cross-border trade. As the market matures, certification integrity will become as important as catalytic performance. Industrial decarbonisation at scale depends not only on converting molecules, but “ Clear and durable carbon accounting rules provide the confidence required for long-term offtake agreements and cross-border trade ” on converting those molecules into verified and trusted low-carbon commodities within a coherent global framework. Institutional engineering as the next frontier If the past decade was about proving the chemistry, the next will be about proving the coordination. Industrial decarbonisation will not fail because reactors underperform or catalysts degrade. It will fail if contracts are too short, risks are misallocated, infrastructure is built in isolation, and policy frameworks shift faster than capital can respond. The industry now faces a decisive test of institutional engineering. Those who can design partnerships with the same rigour applied to process design will determine whether low-carbon fuels remain demonstration projects or become the backbone of a decarbonised industrial economy.
Maurits van Tol maurits.vantol@matthey.com
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CCUS has the potential to revitalise industrial heartlands CCUS is not only a crucial climate technology, but an industrial opportunity capable of strengthening domestic supply chains and boosting regional economic growth
Olivia Powis Carbon Capture and Storage Association (CCSA)
F or communities built around industry, the energy transition raises a fundamental question: how do we cut emissions without losing vital industries that produce the essential materials modern economies rely on, while also supporting local jobs and livelihoods? Across Britain’s industrial heartlands – from Scotland and Wales to Teesside, the Humber, and the North West – heavy industry has shaped local economies and national prosperity for generations. These regions powered the industrial revolution and have remained central to the UK’s growth ever since. The skills and infrastructure developed in these regions continue to underpin the UK’s industrial capabilities today. Yet many of these sectors are among the hardest to decarbonise. The challenge facing policymakers is therefore not simply environmental, but economic and social: how can the UK meet its climate commitments while safeguarding the sectors, skills, and communities that built the country’s industrial strength? Added to this is the imperative for the UK to maintain a secure, decarbonised energy system that keeps the lights on and powers industry. As the electricity system rightly evolves toward a greater share of renewable generation, the need for stable, clean, dispatchable power also becomes increasingly important. Carbon capture, utilisation and storage (CCUS) is central to meeting these challenges. Global and domestic climate authorities are unequivocal about its importance. The Intergovernmental Panel on Climate Change (IPCC), the International Energy Agency (IEA), and the UK’s Climate Change Committee (CCC)
have all concluded that there is no credible route to achieving net zero without CCUS. Beyond its environmental necessity, CCUS is also a major economic opportunity. It enables continued investment in critical industries, supports the production of low-carbon goods, and strengthens the UK’s competitiveness in global markets. It can also provide clean, dispatchable power to complement renewables, while making use of the UK’s extensive CO₂ storage capacity in the North Sea. Together, “ CCUS enables continued investment in critical industries, supports the production of low-carbon goods, and strengthens the UK’s competitiveness in global markets ” these advantages position CCUS as the foundation for a strong and growing carbon management industry. From ambition to delivery The Carbon Capture and Storage Association’s (CCSA) CCUS Delivery Plan Update 2025 highlights both the scale of the opportunity and the urgency of maintaining momentum (CCSA, 2025) . Most importantly, it shows that CCUS in the UK has moved beyond theory. Five major projects have now achieved final investment decisions and have started construction, including the first two CCUS transport and storage networks. They are already supporting jobs, mobilising supply chains, and beginning to decarbonise power generation and key industries, including cement and energy-from-waste.
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Together, these projects demonstrate that CCUS is not only a crucial climate technology, but an industrial opportunity capable of strengthening domestic supply chains and boosting regional economic growth. Building the workforce of the low-carbon economy The benefits of CCUS extend beyond infrastructure and investment. The first CCUS projects are already benefitting communities with a clear focus on local hiring, apprenticeships, and skills development, while helping to build the workforce Britain needs for its low-carbon economy. Helping deliver clean power alongside renewables, Net Zero Teesside Power – the world’s first commercial-scale gas-fired power station with carbon capture – is also supporting 175 young people entering clean energy careers through local training initiatives, alongside a £1 million investment in regional skills programmes. Across the HyNet cluster, more than 75 apprentices are already working on connected sites, developing expertise in areas such as pipeline construction, industrial engineering, and carbon transport infrastructure. And these projects are only just getting started. By 2050, HyNet and the East Coast Cluster could be contributing more than £20-30 billion to the local and UK economy, supporting thousands of new jobs. The Government must accelerate plans to build out these clusters, connecting more emitters, for these benefits to be unlocked. More broadly, for Britain’s industrial heartlands, CCUS is already creating the jobs of the future, enabling young people to build skilled careers in the communities they grew up in rather than feeling they must move away to find opportunities. It also provides a practical transition for workers in the oil and gas sector, whose decades of expertise in engineering, offshore operations, and major infrastructure can help power the growth of low- carbon industries like CCUS. That is why CCUS can help renew pride in the community, ensuring places with long industrial histories are not left behind by the transition, but are instead at the forefront of a new era of industrial growth. A strong pipeline – but growing policy risk With the CCUS industry now on the cusp of
CO captured at source from industry
Power plants
Fertiliser production
Heavy industry
CO injection platform
Cement production
CO transport by ship
Permanent o shore geological storage of CO 1-3km below the seabed
Chemical production Carbon usage
Building materials Food & drink production
Figure 1 Carbon captured from source at industry
Once complete, the East Coast Cluster in the North East and HyNet in North West England and North Wales will demonstrate how the shared cluster model can work in practice. By enabling multiple industrial sites to connect into common CO₂ transport and storage infrastructure, this cluster approach reduces costs and helps industrial regions decarbonise simultaneously having developed the full CCUS value chain from capture to storage. With spades now in the ground and significant private investment committed, substantial contract awards are already flowing to British businesses. Across both clusters, CCUS project developers have committed to, and are currently exceeding, 50% UK local content across engineering, procurement, and construction. They have also already contracted with nearly 250 UK companies to support delivery. Within the East Coast Cluster alone, around £4 billion of construction contracts have already been awarded to companies across Britain’s engineering and manufacturing supply chains. As part of this Cluster, the Northern Endurance Partnership, which is developing the transport and storage network, recently reported that the project had reached 25% completion. Liverpool Bay CCS, HyNet’s transport and storage network, has also now reached 25% completion, showing that both clusters are making real progress in construction.
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Figure 2 UK project pipeline projected operational CO₂ capture capacity by year
deployment, the Delivery Plan highlights the strong pipeline of projects emerging across the UK (see Figure 2 ). More than 100 CCUS projects are currently in development, capable of capturing around 77 million tonnes of CO₂ per year. This reflects strong demand from energy-intensive industries seeking to decarbonise while remaining competitive and continuing to operate in the UK rather than relocating overseas. However, the Delivery Plan also identifies a widening gap between ambition and delivery. Since 2023, 27 projects have been cancelled or mothballed, removing more than 15 million tonnes of capture capacity from the UK pipeline. Nearly one-third of projects have paused development spending, while timelines have slipped by an average of two years. Of the developers who fed into the report, 64% warned that their projects are now at risk without urgent clarity this year on future deployment frameworks. The issue is not a lack of industrial demand or investor interest. Rather, it reflects uncertainty around future routes to market, revenue frameworks, and market mechanisms needed to support the next wave of projects. Unlocking the next wave of clusters The first clusters represent only the beginning of the UK’s carbon capture opportunity. Two strategically important projects expected to form part of the next phase of deployment are Viking CCS in the Humber and the Acorn Project in Scotland. Viking CCS would connect industrial emitters
across the Humber – the UK’s most carbon- intensive industrial region – to safe offshore storage reservoirs located under the Southern North Sea. With an ambition to safely, securely, and cost-effectively transport and store 10 million tonnes of UK emissions per year by 2035, and an initial storage capacity of more than 400 million tonnes, the project has the potential to become one of Europe’s largest carbon storage hubs. In Scotland, the Scottish Cluster, centred on the Acorn Project, will capture emissions from heavy industry and energy facilities and store them safely beneath the North Sea using repurposed oil and gas infrastructure. Scotland’s decades of experience in offshore energy provide a powerful advantage. The region’s highly skilled workforce and established infrastructure offer a strong foundation for developing carbon storage and enabling supply chains to transition into a growing low-carbon industry. Both Viking and Acorn received development funding commitments from the Government in last year’s Spending Review. Confirming and allocating this funding will be essential to maintaining investor confidence and expanding the UK’s CCUS network so more industrial regions can decarbonise and remain competitive. Decarbonising industry across the whole country Looking to the future, the industry intends to go beyond these initial clusters to realise decarbonisation across Britain’s industrial
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power transition. CCUS enables these industries to produce low-carbon versions of the materials the world increasingly demands, strengthening competitiveness while maintaining domestic capability. A European carbon storage opportunity As the UK-EU relationship evolves following the reset discussions last year,
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Figure 3 UK licensed CO₂ storage potential
heartlands. This will require a nationwide allocation framework and clear routes to market for future projects. One important example is the Peak | Morecambe Net Zero (MNZ) Cluster across Derbyshire and Staffordshire, which aims to decarbonise 40% of the UK’s cement and lime industry – sectors that are among the most emissions-intensive and essential to modern economies. “ Access to UK storage could reduce decarbonisation costs for European emitters by up to 28%, delivering savings of €2-2.7 billion annually by 2040 ” The project will attract £5 billion of private capital investment and could safeguard around 2,000 jobs while creating thousands more during construction and operation. The project took a major step forward last year with a £28.6 million equity investment from the National Wealth Fund. This is development funding for the pipeline between Peak Cluster and MNZ, demonstrating the role that public finance can play in delivering these critical projects. This really matters at a time when UK cement production is at its lowest level since the 1950s, and imports have tripled. Cement and lime underpin critical infrastructure, from homes, schools, and hospitals to water systems and the energy infrastructure needed for the clean
there is a clear opportunity to strengthen cooperation on energy by developing a Europe- wide carbon management market, with the UK playing a leading role. CCUS offers a practical route to deepen this partnership while positioning Britain at the forefront of a new global industry. The UK holds around one-third of Europe’s potential CO₂ storage capacity, giving it a natural advantage as a regional hub for carbon storage (see Figure 3 ). This creates a significant economic opportunity, allowing the UK to provide carbon management services to European industry while supporting the development of a high-value domestic sector. Access to UK storage could reduce decarbonisation costs for European emitters by up to 28%, delivering savings of €2-2.7 billion annually by 2040, while creating export opportunities worth around £2 billion per year by 2030, rising to £30 billion in annual UK tax revenues by 2050. Crucially, this model supports industrial regions on both sides of the Channel, helping to sustain production, protect jobs, and maintain competitiveness as industries transition. Much of the infrastructure required to support this market, including pipelines, shipping routes, and offshore storage, is already in place or under development. The primary barrier is not technology, but the need for policy alignment. Progress towards linking the UK and EU Emissions Trading Systems would be a key step
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Turning early progress into a national industry The CCUS industry is expanding rapidly worldwide. As the Global CCS Institute highlights, the number of operational facilities increased from 50 to 77 in a single year, while the global development pipeline now exceeds 730 projects (Global CCS Institute, 2025). The UK has already taken important steps forward. Carbon capture is now being built, but early projects alone will not create a self- sustaining industry. To maintain momentum, the Delivery Plan is clear that greater policy certainty and faster decision-making are now required, including a clear allocation framework for future projects, markets for low-carbon products and carbon removals, and progress on UK-EU cooperation to unlock cross-border CO₂ storage. “ To maintain momentum, the Delivery Plan is clear that greater policy certainty and faster decision- making are now required ” With these foundations in place, CCUS can move beyond reliance on government support and transition into a competitive, self-sustaining market. In doing so, it has the potential not only to support emissions reduction but to revitalise industrial regions, protect and create skilled jobs, and establish the UK as a leader in a growing global industry. After years of planning, carbon capture is becoming a reality in Britain. The priority now is to ensure these first projects are not an end point, but the starting point for a world- leading CCUS sector that delivers clean growth, industrial resilience and long-term economic value. The choice is straightforward: act now to secure investment and build this industry at home, or risk seeing capital, jobs, and capability flow to the countries that move fastest to lead the global carbon management market. VIEW REFERENCES Olivia Powis info@ccsassociation.org
in unlocking this opportunity, strengthening investment signals, reducing costs, and enabling the development of a fully integrated European carbon management market. Ensuring geography is not a barrier Another priority identified in the Delivery Plan is ensuring that geography does not limit access to carbon capture. Many industrial sites are located far from major pipeline networks. For these projects, alternative transport solutions to pipelines, such as shipping, rail, and road, will play an essential role in enabling captured CO₂ to reach storage sites. The CCSA’s survey shows that 36% of capture projects may require these alternative solutions, particularly those located outside existing industrial clusters. Establishing clear market and regulatory frameworks for CO₂ shipping and transport will therefore be critical to ensuring CCUS deployment can expand across the whole country. Unlocking carbon removals and new markets Emerging carbon markets also present new opportunities for CCUS deployment. Carbon capture enables greenhouse gas removal (GGR) technologies such as bioenergy with carbon capture (BECCS), direct air carbon capture and storage (DACCS), and waste- to-energy with CCS. These technologies permanently remove CO 2 from the atmosphere by capturing biogenic carbon and storing it safely underground. Such removals will be essential to delivering what the CCC’s Seventh Carbon Budget indicates is required to meet net zero. The budget anticipates a need for 20.7 MtCO₂ per year of removals by 2040, rising to 32.8 MtCO₂ per year by 2050 – playing a critical role in offsetting residual emissions from hard-to-abate sectors such as aviation and agriculture. More than 28 million tonnes of carbon removal credits have already been sold globally, and the market is projected to reach $1 trillion by 2050. By deploying CCUS alongside GGR, there is a clear opportunity to harness the demand for carbon credits to unlock investment, lower costs, and help transition the sector towards a self-sustaining market.
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Cost-effective CO 2 sourcing for utilisation and sequestration The future of low-cost carbon dioxide sourcing and the most viable pathways to meet new demand as market dynamics evolve
Stephen B Harrison sbh4 Consulting
C O 2 is used in many commercial applications, such as beverage carbonation and food chilling. Its use cases also include pH control of wastewater and shielding gas during steel welding. Traditional sources of CO 2 are in a major transition. Ammonia plants in Europe are closing, and smaller refineries are at risk. Corn ethanol production is unlikely to scale due to land use concerns in the food versus fuel debate. On the demand side, production of e-fuels such as methanol and Fischer-Tropsch (FT) synthetic liquids is expected to create a demand for large quantities of biogenic CO 2 to react with electrolytic hydrogen. To minimise the cost of e-fuel production, the CO 2 will need to be sourced close to the hydrogen production location, which will most likely be near a cheap source of renewable electricity. Additionally, a new application for biogenic CO 2 is emerging in the voluntary carbon market (VCM) for carbon dioxide removals (CDR). In this case, the CO 2 is permanently sequestered. To optimise the business case, biogenic CO 2 must be sourced close to the sequestration site. Undoubtedly, CO 2 supply and demand will need to rebalance in accordance with these market dynamics. New supply chains will certainly emerge. The open question is which CO 2 sources will be most cost-effective to serve new demand in the locations where it is emerging? Ammonia plant closures Ammonia production has traditionally been one of the main sources of commercial CO 2 because CO 2 is captured within the ammonia synthesis process. Investment in CO 2 conditioning and
liquefaction represents only a small additional operating and capital cost. CO 2 shortages are increasingly common during the summer months. At this time of year, demand for CO 2 in chilled beverages spikes. Simultaneously, ammonia production falls after spring, and corn ethanol production eases off, awaiting the new harvest. Furthermore, ammonia plant closures by CF Fertilizers in the UK and BASF in Germany have removed some large commercial CO 2 sources. For these reasons, ammonia plants are no longer perceived as the most attractive commercial CO 2 sources. Refineries at risk In recent years, refinery steam methane reformers (SMRs) have been used to diversify commercial CO 2 sources. As an example, in 2016, BOC started up a 50,000 tonne-per-year (tpy) CO 2 capture and liquefaction plant at Refining NZ’s Marsden Point refinery in New Zealand. However, smaller local refineries are progressively closing as larger, modern regional refineries come on stream. In line with this trend, the Marsden Point refinery closed in 2022, and the required refined products were imported from Asian refineries. As this refinery consolidation trend continues worldwide, investments in CO 2 capture and liquefaction from refinery SMRs will become increasingly risky. Biomethane and CO 2 co-production Biogas-to-biomethane ensures the biomethane is of sufficient quality to be injected into the natural gas distribution and transmission pipeline network. CO2 is removed to achieve a high calorific value for the biomethane. Liquefaction of the captured biogenic CO 2 is low-cost because
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Multi-stage centrifugal CO compression train
Cooling
Inert gases with some CO to vent
Dry, low pressure gaseous CO feed
Feed gas precooler
Liqui er
Overhead condenser
Flash separator
2-stage screw or reciprocating Ammonia compression train
Distillation column
Reboiler
Liquid CO subcooler
Cooling
Cooling
Liquid CO insulated storage
Figure 1 CO 2 liquifier with ammonia refrigeration cycle
it requires minimal additional Capex and Opex (see Figure 1 ). CO 2 from biogas upgrading is used as a local, diversified source of commercial CO2 . For example, Bright Renewables has installed food- grade liquid CO 2 production plants at the biogas facilities in Heek and Brandis, Germany. CO 2 from bioethanol Bioethanol is the most significant liquid biofuel worldwide by production volume. It is produced during the fermentation of sugary broths on an industrial scale. The process is like making a hop-free beer from grain, then distilling it to make whisky. In Asia and the Americas, the most widely used crops for bioethanol production are maize and sugar cane. Rice, sorghum, and cassava are also used in secondary quantities. In Europe, these crops are generally replaced by wheat and sugar beet. Corn ethanol fermentation yields a high-purity CO 2 stream, which is readily liquefied. This is a common CO2 source in the US and is also used in Europe. For example, Messer France has exploited a bioethanol CO 2 source at Vertex Bioenergy at Lacq. Demand for biogenic CO 2 Since 2020, a vibrant VCM has emerged. This exists in parallel to regulated costs of CO 2 emissions through national taxation programmes and emissions trading schemes.
The main buyers of CDR certificates in the Voluntary Carbon Registry (VCR) are cash- rich consulting firms and US-based mega-cap tech companies. Their vision is to offset the CO 2 emissions from their business activities. This is a cost-effective route to ‘net-zero’ for these knowledge-based sectors because their greenhouse gas emissions are diffused. Other industrial sectors with higher-intensity point- source CO 2 emissions can capture and sequester CO 2 at a lower cost. The VCM prizes biogenic CO 2 for its ability to permanently remove CO 2 from the atmosphere. Biogas monetisation with CDR Capture and sequestration of biogenic CO 2 is one of the favoured methods to generate high-quality CDR certificates. For example, in November 2025, the German clean-tech start-up Reverion signed an agreement whereby Frontier (a trader of CDR certificates) will purchase 96,000 tonnes of CDR certificates for $41 million. This values each tonne of removed CO 2 at $427 (circa €370). Reverion has developed a technology to convert biogas to heat and power. Its process does not require CO 2 to be separated from the biogas prior to entering its equipment. Plus, it produces a high-purity biogenic CO 2 stream ready for low-cost liquefaction. Considering that €370 per tonne must cover the full value chain cost and that the cost of transportation and sequestration from Germany
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