CCUS must get Spending Review backing to unlock billions in supply chain investment

Staff
By Staff
2 Min Read

Britain’s carbon capture, utilisation and storage (CCUS) industry is gaining ground, with major projects beginning construction and creating jobs.

But the Carbon Capture and Storage Association (CCSA) warns that continued progress depends on clear funding commitments in the upcoming Government Spending Review.

The CCSA says a long-term delivery framework is essential to unlock private investment, grow a £2.5 billion domestic supply chain by 2040 and secure the UK’s place in a £54 billion global industry by 2050.

Track-1 projects like Net Zero Teesside Power (NZT Power), Northern Endurance Partnership (NEP) and Eni’s Liverpool Bay CCS Project are already working with dozens of UK-based suppliers.

These early investments, exceeding £5.2 billion, are projected to support over 5,000 jobs at peak construction.

In Teesside, Liberty Steel is ramping up to deliver line pipe manufacturing under £4 billion worth of Engineering, Procurement and Construction (EPC) contracts.

Eni has engaged 35 UK companies for Liverpool Bay, where 2,000 jobs will be supported.

“Being part of the NZT Power and NEP project is really exciting,” said Finlay Wray, a Degree Apprentice. “I’m gaining hands-on skills and knowledge that’ll help me start my career in the energy sector.”

Industry-led training schemes like the Tees Valley Net Zero Industry Scholarship aim to skill up 150 students this year alone, but future growth hinges on government backing.

CCSA CEO Olivia Powis said: “The UK supply chain is ready to respond with the skills, innovation and capabilities needed to make UK CCUS a world-leading industry. But continued Government commitment and a pipeline of future projects is essential… otherwise we will see investors and this industry go overseas.”

Copyright © 2025 Energy Live News LtdELN

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *