Hydrogen and Carbon Capture, Utilisation and Storage (CCUS)

Welcome to a transformative era in clean energy and carbon storage in the UK.

The government has allocated up to £21.7 billion in funding over 25 years to boost the carbon capture industry through Track 1 clusters, including Hynet and the East Coast.

This funding will enable decisive final investment decisions on these clusters, expected to draw in £8 billion of private investment.

This is an opportunity for European investors to engage in a growing sector that supports the transition to a low-carbon economy. Stay tuned for the forthcoming Hydrogen Strategy Update, which will detail significant milestones and ongoing policy developments.

Lean more about CCUS UK opportunities and how to expand your business to the UK:

Download the CCUS UK Opportunities Handbookopens paas-s3-broker-prod-lon-8db94025-3db3-41df-9a2a-fbb251b24433.s3.amazonaws.com in a new tab

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3 reasons to choose the UK for Hydrogen:

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Geology. The UK has favourable geology for large-scale hydrogen storage in salt caverns and disused oil and gas fields under the North Sea. The UK has a global leading geological advantage – having one of the greatest CO2 storage potentials of any country in the world.

2

Ambition. The UK aims to produce up to 10GW of low-carbon hydrogen power by 2030, with at least half coming from green hydrogen. We will use excess offshore wind power to bring down costs. The UK Government has published delivery roadmaps to support industry to invest in carbon capture and storage, and hydrogen.

4

Demand. UK hydrogen demand is estimated to reach 80 to 140 terawatt-hours in 2035. The increase in UK hydrogen production ambition, with greater focus on electrolytic hydrogen production, has opened potential opportunities to export hydrogen from the UK at scale.

Hydrogen investment opportunities in the UK

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Hydrogen in North East Scotland

Scotland is perfectly placed to meet a significant proportion of Europe’s hydrogen demand, which could reach 700 TWh annually by 2050. Strategically positioned on the North Sea, Scotland has strong clusters of offshore and onshore wind, oil and gas, maritime, chemicals and gas distribution.

Explore North East Scotlandopens bit.ly in a new tab
6

East Midlands Freeport

The Freeport offers access to a wide range of innovative sectors, including advanced manufacturing, automotive and advanced logistics, and space and satellites. Hydrogen also presents a significant opportunity, with hydrogen heat pumps and boilers being developed by Bosch

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Felixstowe & Harwich

Freeport East is a world-leading centre for clean energy production, offering a unique set of opportunities and support for investors, traders, manufacturers and suppliers. Freeport East covers 1,500 square km and includes a range of development and investment opportunities.

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UK supply chain strengths to consider:

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Dedicated R&D funding

The UK’s dedicated R&D funding for hydrogen is  focussed on heavier applications, such as maritime, aviation and road freight, or in regional hubs where transport can help support its use in industrial, energy.

7

Investment to reduce emissions

We have recently announced investments which include hydrogen vehicles and vessels, such as the £206m UK Shipping Office for Reducing Emissions (UK-SHORE) and £200m for our Zero Emission Road Freight Demonstration (ZERFD).

6

UK Government innovation funding programme

We have created the Industrial Hydrogen Accelerator, a £26 million innovation funding programme to support the demonstration of end-to-end industrial fuel switching to hydrogen in the UK.

8

World-leading expertise

The UK has world-leading expertise to draw upon – with two of the world’s major process licensors for these projects based in the UK – and a mature supply chain to utilise from wider industries such as oil & gas and chemicals.

Explore cost-effective finance solutions for project owners

UK Export Finance (UKEF) is the UK Government’s export credit agency offering long-term, cost-effective finance solutions for buyers procuring goods and services from the UK. A £2bn Clean Growth Direct Lending Facility dedicates funding specifically for clean growth and renewable energy projects.

Explore UK Export Financeopens bit.ly in a new tab
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Build connections with the UK's Hydrogen ecosystem:

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Hyvolution Paris

28th-30th January, 2025

Paris, France

Learn moreopens paris.hyvolution.com in a new tab

Interested in more events like this?

View upcoming events, insights and opportunities in the energy sector this year.

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Get support from DBT

The United Kingdom's Department for Business & Trade (DBT) is a specialised government body with responsibility for negotiating international trade policy, supporting business, as well as delivering an outward-looking trade diplomacy strategy.

Our international network provides a global reach in 170 countries. We are your expert guides on your journey to invest in the UK. We offer free and confidential advice and services to inward investors, giving new investors the confidence to invest and helping existing inward investors to expand and grow – using the UK as your gateway to the world.

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