UK plans competitive CCUS market by 2035 with £20 billion investment

The UK government unveiled its CCUS Vision to build a competitive carbon capture, usage and storage market by 2035, targeting 20-30 million tonnes of CO2 stored yearly by 2030, 50,000 jobs and up to £20 billion in investment. The policy roadmap offers a regulatory model relevant to India's evolving carbon-management strategy.

The UK government unveiled its CCUS Vision to establish a competitive carbon capture, usage and storage market by 2035, transitioning from government-backed early projects to competition where UK companies build capture facilities and offer services globally. The plan aims to store 20-30 million tonnes of CO2 yearly by 2030, supporting 50,000 jobs and backed by up to £20 billion in investment, leveraging North Sea storage capacity of up to 78 billion tonnes of CO2. Measures include a competitive allocation process by 2027 and alternative CO2 transport via ships, roads and rails from 2025.

The plan most directly affects UK industrial emitters, energy companies and the developing carbon-capture supply chain, advancing four clusters: HyNet in North West England, the East Coast Cluster in Teesside and the Humber, Acorn in Scotland and Viking in the Humber. These integrate energy hubs using existing infrastructure to align with net-zero goals. Initial commercial terms were agreed with the Northern Endurance Partnership around Teesside and the Humber. The framework is relevant to industrial sectors and policymakers globally designing CCUS market and allocation structures.

Industrial emitters and policymakers should monitor the UK's shift from subsidized early projects to a competitive allocation process by 2027 and the establishment of third and fourth CCUS clusters through a faster process. Indian stakeholders developing carbon-management policy can study the cluster-based, infrastructure-leveraging approach and flexible CO2 transport options from 2025. Stakeholders should track the 2024 expansion process for the Teesside and Humber cluster, the industry-led working group on cost-effective capture, and progress toward the 20-30 million tonne annual storage target by 2030.

Key figure — Storage target: 20-30 million tonnes of CO2 yearly by 2030