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.

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.