Hydrogen and Carbon Capture, Utilisation and Storage (CCUS)

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:

The UK is a first mover for CCUS decarbonisation hubs, with ambitious plans to lead the global deployment and development of carbon capture:

Track 1 Clusters

The first commercial clusters promise deep decarbonisation through a range of CCUS applications, with the first projects reaching final investment before 2025.

HyNet: includes hydrogen production facility targeting first deployment in 2025, with ambitions to raise hydrogen production capacity to 3.8 GW by 2030. HyNet is being developed by a set of global organisations with private and public sector partners.2

East Coast Cluster: includes NZT Power, a new dispatchable gas power station with carbon capture technologies. NZT Power is a joint venture between BP and Equinor. BOC plan to deploy carbon capture to their existing SMR for low-carbon h2 production, and BP are planning 'H2 Teeside' - a blue h2 production facility.

Track 2 Clusters

In December 2023, the government set out its Track-2 approach of an ‘anchor’ and ‘buildout’ phase and high-level timelines, along with the request for a provisional cluster expansion plan.