De-carbonisation Without De-industrialisation

The UK government has committed £21.7 billion over the next 25 years to develop its carbon capture, usage, and storage (CCUS) industry—an ambitious move intended to help the country achieve its net-zero emissions target by 2050. But what exactly is carbon capture, and is it a worthwhile investment?

CCUS involves capturing carbon dioxide (CO2) emissions at their source—such as from industrial processes like cement production or power plants—and storing it deep underground, often in disused oil and gas reservoirs.

Whilst this technology has been around for decades, it has yet to make a meaningful impact, currently sequestering only a fraction of global CO2 emissions. Nevertheless, the UK government sees it as a crucial component of the country's strategy to decarbonise, especially for industries that are difficult to electrify or transition to renewable energy, such as aviation and heavy industry.

The current plan aims to capture 8.5 million tonnes of CO2 annually by 2028, which pales in comparison to the 384 million tonnes of CO2 the UK emitted in 2023. However, proponents of CCUS argue that its potential could grow substantially if the technology becomes more cost-effective, much like wind and solar power have over the past two decades.

The UK has a unique advantage in this emerging sector. The geology of the North Sea, with its depleted oil and gas fields, offers vast storage capacity for CO2. Moreover, the country has a workforce with transferable skills from the oil and gas industry, positioning the UK as a potential global leader in carbon capture. Beyond environmental benefits, this investment is expected to generate thousands of jobs and attract around £8 billion in private investment, supporting the nation’s industrial heartlands.

Yet the initiative has its detractors. Environmental groups worry that CCUS could serve as a lifeline for fossil fuel companies, enabling them to prolong the life of their carbon-intensive operations. They argue that resources should be focused on accelerating the shift to renewable energy rather than providing fossil fuel industries with a means to mitigate emissions.

Nevertheless, the UK government remains committed to this approach.

The transition to net zero will require more than just renewable energy—it will necessitate solutions for industries where direct electrification isn’t viable. As Energy Secretary Ed Miliband has suggested, the cost of carbon emissions is likely to increase over time, making it more economically sensible for industries to invest in carbon capture rather than continue to pollute.

Ultimately, the UK’s large-scale investment in CCUS is both a calculated risk and a long-term vision. If the technology proves successful and scalable, it could play a key role in reducing the country’s emissions, whilst preserving jobs in industrial sectors. The question that remains is whether it can scale up quickly enough—and cost-effectively enough—to make a real difference in the fight against climate change.

Renewal Energy vehemently support government efforts to de-carbonise without de-industrialising. We should fight to keep our industrial expertise and capabilities alive and kicking in this country, and make a conscious effort to protect jobs at home, rather than abroad. The country that pioneered the industrial revolution should not outsource vital industries in the name of ideology, but build on our history of innovation and pioneer the revolution, at home, with our people, for our people.