Industry News

U.K. Government Earmarks Funds for Carbon Capture and Nuclear Energy in Clean Energy Ramp-Up

by | Mar 13, 2023

U.K. Chancellor Jeremy Hunt is expected to pledge £20 billion to scale up carbon capture and low-carbon energy at this week’s budget, in a bid to compete with EU and US markets and bolster energy security. 

Hunt will announce plans to invest £20 billion over the next 20 years to push projects which aim to store 20-30 million tonnes of CO2 per year by 2030, reported City A.M.. 

The U.K. has already committed £1 billion to develop four CCUS hubs in the U.K. by 2030.

Energy security secretary, Grant Shapps said: “Already a global leader in offshore wind power, we now want to do the same for the UK’s nuclear and carbon capture industries, which in turn will help cut the wholesale electricity prices to amongst the lowest in Europe.

“Today’s funding will play an integral role in delivering that, helping us further towards our net zero targets and creating green jobs across the country.” 

Hunt added: “This plan will help drive energy bills down for households across the country and improve our energy security whilst delivering on one of our five promises to grow the economy.”

The U.K. is home to enough carbon capture capacity to store over a century and a half of national annual CO2 emissions. 

The Crown Estate and Crown Estate Scotland launched their first engagement with industry on 7 March on the future of the North Sea carbon capture utilisation and storage. 

The notice was accompanied by a joint survey issued to industry stakeholders and aimed at exploring the market requirements for developing future subsurface carbon stores in UK waters.

The survey’s primary focus is to determine the number of stores, storage amounts, and injection levels to be reached by 2035 and 2050. Additionally, it seeks feedback on any prospects and roadblocks in meeting the projected targets.

The Crown Estate’s head of new ventures for Marine, Nicola Clay, said: “CCUS development is key to how we unlock the full potential of the UK seabed and its contribution to building a net zero future. We are committed to ensuring best practice by collaborating with the many users of the seabed, and to taking a coordinated approach to its management, in order to support a thriving marine environment. We are excited to use the data this engagement will provide to inform our progress in the coming months.”

Related: The UK Launches Its First-Ever Carbon Storage Licensing Round

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