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Current development stage Projects currently without route to market
CCC Seventh Carbon B udget 2050 ambition
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DESNZ Carbon B udget and G rowth D elivery P lan 2037 ambition
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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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