Developing the Carbon Capture Sector in the UK: A Strategic Path Forward

Introduction

Carbon capture, utilisation, and storage (CCUS) is a critical technology in the fight against climate change. It involves capturing carbon dioxide (CO₂) emissions from industrial processes and power generation, transporting it, and storing it underground to prevent it from entering the atmosphere. It is generally regarded as a transitional low-carbon solution, as new renewable energy processes such as renewable hydrogen (green hydrogen), are further developed.

The United Kingdom (UK) has been at the forefront of developing and implementing CCUS technologies, recognising their importance in achieving net-zero emissions by 2050. Kent is playing an active role in this area by leading and supporting key CCUS projects here in the UK and abroad.

Strategic Steps to Develop the CCUS Industry

Technology-Neutral Approach

A technology-neutral approach provides contractor and client alike with the ability to evaluate technology's strengths and weaknesses in different settings, and then allow the best solution to be implemented. The approach is beneficial as it:

• Encourages innovation: Businesses can experiment with different technologies to find the most efficient solutions.

• Prevents obsolescence: Regulations do not become outdated as technology advances.

• Promotes competition: No single technology or provider is given an unfair advantage.

Policy Support and Incentives

The UK government could continue to build up strong policy support and financial incentives to attract private investment in CCUS. This includes extending funding programmes, offering tax incentives, and creating a favourable regulatory environment. An example is implementing a Carbon Takeback Obligation, which requires fossil fuel suppliers to store a rising percentage of their CO₂ emissions, which could create a self-sustaining storage market.

Fostering Technological Innovation

Continued research and development in carbon capture technologies is essential. UK government organisations could support pilot projects and demonstration plants to test and refine next-generation capture methods. Collaboration between government, academic institutions, industry, and international partners can drive innovation and reduce costs.