21 July 2025

The path to net zero is anything but straightforward; it demands bold innovation and transformative approaches from every sector in the UK’s economy. Could carbon capture and storage (CCS) be one pivotal solution?

While renewable energy dominates headlines, we cannot ignore natural gas - a fuel that underpins a significant portion of the UK’s energy supply. The country’s reliance on natural gas is why many are now advocating CCS as a credible answer to decarbonising the nation’s energy mix.

Let's dive into how CCS works, why it's gaining significant Government backing and explore the groundbreaking projects in the UK.


What is carbon capture and storage?

Carbon capture and storage (CCS) technologies capture carbon dioxide at the source and then transport it to underground storage facilities. This prevents carbon emissions being released into the atmosphere and contributing to global warming.

With CCS technologies  typically capturing around 90% of CO2 emissions, its potential to help decarbonise the gas network is huge. This is key as, while the UK pushes for more renewables, natural gas is still widely used. For instance, in May 2025, gas accounted for 20.4% of the UK's electricity generation, making it the second-largest source.

In addition to reducing direct emissions, CCS is also vital for the production of blue hydrogen. With carbon dioxide being captured and stored as natural gas is processed into hydrogen, a low-carbon, powerful fuel is created which can help decarbonise energy-intensive sectors like transport and industrial heating.

This potential has been recognised by the UK Government with significant investment, marking a pivotal moment in the technology’s future.

 

How much is the Government investing in CCS projects?

In May 2025, the Government announced the investment of an extra £9.1 million into CCS as part of the Chancellor’s Spending Review. Two major carbon capture projects in Aberdeenshire and the Humber are set to receive funding. Combined, these projects could remove up to 18 million tonnes of CO2 from the atmosphere each year.

In June 2025, the Government’s Industrial Strategy also ringfenced at least £5.8 billion of funding targeting projects in carbon capture, low carbon hydrogen, gigafactories, ports and green steel over the next parliamentary term.

This investment means natural gas can remain within the UK’s energy mix, without hampering progress towards net zero goals. The Energy Secretary, Ed Miliband, commented: “This will support industrial renewal in Scotland and the Humber, with thousands of highly-skilled jobs at good wages to build Britain's clean energy future.”

 

What is the Acorn CCS project in Aberdeenshire?

Acorn is Scotland’s only CCS project, a collaborative carbon capture effort that brings together the expertise of Storegga, Shell UK, Harbour Energy and North Sea Midstream Partners.

Working in tandem with National Gas Transmission's SCO2T Connect Project, Acorn’s aim is to establish the vital infrastructure needed to transport and permanently store CO2 in Scotland​. This will enable developments crucial for decarbonising the Scottish Cluster, a group of industrial, power and hydrogen businesses located in Scotland's Central Belt and North East.

By 2030, the Scottish Cluster aims to capture and store between 5 and 10 million tonnes of CO2 per year, with sites in the North Sea providing a storage capacity of 240 million tonnes.

The Acorn project would then take advantage of one of the UK's most extensively studied and well-understood geological sites for CO2​ storage. Situated over 100km off the north-east coast of Aberdeenshire, this prime location lies 2.5km beneath the North Sea seabed.

 

What is the Viking CCS project in the Humber?

Viking is a major CCS project in the Humber region, the UK’s most industrialised and highest CO2 emitting area. Operating both onshore in the Humber and offshore in the southern gas basin of the North Sea, Viking aims to capture, transport and store 15 million tonnes of carbon every year by 2035. The project has an initial storage capacity of 400 million tonnes.

The onshore hub Immingham will play a vital role, as the Viking project captures the CO2 emissions generated from local industrial processes. These will then be transported for 55km, then moved to depleted gas reservoirs under the North Sea for storage. These are 9,000ft beneath the seabed, and 140km from the Lincolnshire coast.

 

What challenges does CCS face?

While CCS offers a promising path to cut emissions, it's not without its hurdles.

Firstly, CCS projects are expensive to develop and operate. The sheer amount of energy needed to capture the CO2​ can actually reduce the overall efficiency of the power plants or industrial facilities they're attached to. Plus, building new pipelines and preparing storage sites demands substantial investment and time, adding to financial pressures.

Furthermore, while the risks are generally considered low, there are environmental restrictions that require meticulous management. These include the potential for CO2​ to leak from underground storage sites, leading to induced seismicity (minor earthquakes triggered by injecting large volumes of CO2​ deep underground).

Meanwhile, some cutting-edge CCS methods, such as direct air capture (DAC), are still in the early stages of development and aren't yet cost-effective for widespread deployment.

Another significant hurdle for CCS is the lack of clear and consistent regulatory frameworks. Evolving regulations can create uncertainty for investors and project developers. This can lead to delayed project timelines and slow down the adoption of CCS technologies.

 

The road ahead for CCS

Ultimately, the journey to net zero is complex, with CCS being one avenue that could help decarbonise the UK’s energy mix. Projects like Acorn and Viking demonstrate the ambitious scale required to curb emissions from heavy industries and enable cleaner fuels like blue hydrogen.

While strong government backing and the potential for creating regional jobs are encouraging, CCS projects in the UK continue to face significant challenges. These include high capital and operational costs, substantial energy requirements, technical complexities and the need for clear, robust regulatory and commercial frameworks to support large-scale deployment.

Yet despite this, CCS holds strong potential for the UK and its ability to use natural gas during the energy transition. The success of projects like Acorn and Viking will be vital for proving CCS's long-term viability and central role in the UK's race to net zero.

 


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