A Competitive UK CCUS Market by 2035

On 20th December, the Department for Energy Security and Net Zero (DESNZ) published their vision of what a market focused (competitive) carbon capture, utilisation and storage (CCUS) sector might look like by the middle of the next decade, driven by the private sector. By this time, the amount of CO₂ stored may need to increase to at least 50 megatonnes per annum (Mtpa). Measures to achieve this goal, include: 

  • Moving to a competitive allocation process for carbon capture projects from 2027 to speed up the building of the UK’s CCUS sector.
  • Creating the conditions for projects that cannot transport CO₂ by pipeline to enter the market from 2025 onwards, using other forms of transport such as ship, road and rail
  • Establishing a working group led by industry to identify and adopt solutions to reduce the cost of capturing CO₂.

It acknowledges that CCUS is a ‘necessity, not an option’ and that for many sectors it is the only viable route to decarbonise at the scale required to meet net zero commitments. CCUS can generate more low carbon power and create a responsive clean energy system, as well as decarbonise the production process for hydrogen and other low carbon fuels.