The UK is taking a bold step towards a sustainable future by signing contracts for its first carbon capture, usage, and storage (CCUS) projects.
The East Coast Cluster in Teesside will spearhead this initiative, aiming to capture and store carbon emissions from regional industries.
With construction beginning in mid-2025, this landmark UK carbon capture project marks a pivotal moment in revitalising the UK’s industrial heartlands, addressing climate change, and fostering long-term economic growth.
UK Energy Secretary Ed Miliband commented: “This investment launches a new era for clean energy in Britain – boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East.
“This is the government’s mission to make the UK a clean energy superpower in action – replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.
What is carbon capture, usage, and storage?
CCUS is an innovative technology designed to combat climate change by capturing carbon dioxide (CO2) emissions before they enter the atmosphere.
The captured CO2 is then either repurposed for industrial use or stored deep underground in secure geological formations, such as beneath the seabed.
By preventing CO2 from contributing to global warming, CCUS offers a practical solution for reducing emissions in heavy industries, which are among the hardest sectors to decarbonise.
East Coast Cluster: A game-changer for the region
The East Coast Cluster in Teesside is at the forefront of UK carbon capture ambitions. Scheduled to begin construction in 2025, this flagship project will not only help the UK meet its net-zero targets but also reinvigorate local economies.
Once operational, the Net Zero Teesside Power project is expected to generate secure, low-carbon energy capable of powering up to one million homes by 2028.
This initiative is backed by the UK government’s recent £21.7bn funding commitment, reinforcing the country’s dedication to becoming a global leader in CCUS technology.
By focusing on the North East of England, the government aims to create thousands of skilled jobs and attract significant investment in innovative technologies.
Economic growth and job creation
The contracts signed for the East Coast Cluster will unlock an estimated £4bn in opportunities for supply chains across the UK.
This includes a surge in local business activity and investment in cutting-edge technology. Initially, the project is expected to support 2,000 jobs in the North East, with tens of thousands more anticipated as the UK carbon capture industry matures.
This initiative builds on the success of the Contracts for Difference scheme, which has propelled the UK’s offshore wind industry to world-leading status.
By applying similar innovative business models to CCUS, the government aims to attract long-term investment and position the UK as a global pioneer in clean energy solutions.
Government and industry collaboration
The success of the CCUS projects is a testament to years of collaboration between the UK government and industry leaders.
The innovative CCUS business models, such as the Dispatchable Power Agreement and the Revenue Support Agreement, are designed to mitigate risks for investors and drive the adoption of CCUS technologies.
The North Sea Transition Authority (NSTA) recently awarded the first-ever carbon storage permit to the Endurance store, marking a significant regulatory milestone.
Additionally, Ofgem’s new role as the regulator for CCUS economic licenses will ensure a streamlined construction process for the country’s first CCUS network.
The Low Carbon Contracts Company (LCCC) will play a critical role in managing these agreements, further strengthening the UK’s commitment to net-zero emissions.
CCUS: A vision for a sustainable future
The investment in UK carbon capture technology underscores its commitment to addressing climate change while bolstering the economy.
By capturing and storing harmful carbon emissions, the UK is paving the way for a cleaner, more sustainable future while creating valuable opportunities for local communities.
Backing the carbon capture industry not only supports the transition to low-carbon energy but also cements the UK’s position as a leader in the global fight against climate change.