London Invests £22 Billion in Carbon Capture

The British government announces a £22 billion investment over 25 years to develop carbon capture and storage projects, aiming to reduce CO₂ emissions.

Share:

The British government announced on Friday a massive investment of nearly £22 billion over the next twenty-five years dedicated to developing carbon capture and storage projects (CCUS). This initiative aims to tackle the environmental challenges related to CO₂ emissions while supporting economic growth.

These projects are designed to revitalize industrial centers, said Prime Minister Keir Starmer. Since taking office in July after the Labour Party’s victory in the general elections, Starmer has committed to promoting innovative solutions for the UK’s energy transition.

Deployment of Carbon Capture Projects

Three carbon capture hubs will be established in the former industrial areas of northwest and northeast England, particularly in the Liverpool region. These facilities will aim to capture emissions from power plants, cement factories, and blast furnaces before they are released into the atmosphere.

Carbon capture and storage (CCUS) involves capturing industrial emissions, followed by injecting them into deep geological reservoirs or reusing them in various industrial processes. This technology is considered essential for achieving the UK’s climate goals.

Economic and Environmental Impact

According to the government, these projects are expected to create approximately 4,000 direct jobs and up to 50,000 long-term jobs. Additionally, they are likely to generate £8 billion in private investments, thereby strengthening the national economy while supporting environmental initiatives.

The UK is committed to reducing its carbon emissions by 8.5 million tonnes per year through these projects. Carbon storage is expected to commence from 2028, marking a crucial step in the fight against climate change.

Reactions from Stakeholders

The Climate Change Committee (CCC), the government’s advisory body on climate strategies, welcomed this initiative. James Richardson, director of the CCC, stated: “It’s fantastic to see the funding for these major projects materialize. We cannot achieve the country’s climate goals without CCUS. This commitment is therefore very reassuring.”

However, the NGO Greenpeace has expressed reservations regarding this announcement. Doug Parr, a UK representative of the organization, criticized the amount invested, arguing that it could be better used to promote green industries such as offshore wind or to fund a national housing insulation program.

Future Perspectives

Despite the criticisms, the British government maintains its position on the importance of CCUS in its overall energy strategy. Integrating this technology is seen as a key component to ensuring a successful energy transition while supporting industrial growth.

The planned investments should also position the UK as a leader in the field of carbon capture, paving the way for future innovations and international partnerships in the fight against climate change.

Atmos Renewables has completed financing for a 100 MW battery energy storage system in Western Australia, marking the company's first asset of this type in the region and strengthening its presence in the Australian energy market.
Eos Energy Enterprises has received an additional $22.7mn from the US Department of Energy to complete the first phase of its battery manufacturing project in the United States, bringing total funding to $90.9mn.
A Wood Mackenzie report estimates required battery investments at $1.2 trillion to integrate an additional 5,900 GW of renewable energy, highlighting battery storage systems' key role in stabilising electrical grids.
Chinese company HyperStrong and Swedish firm Repono AB announce a strategic agreement to jointly implement large-scale energy storage projects totalling 1.4 GWh in Europe by the end of 2027.
Globeleq and African Rainbow Energy finalise financing for Africa's largest standalone battery energy storage project, raising ZAR 5.4 billion ($300 million) from Absa and Standard Bank in South Africa.
Matrix Renewables and Pioneer Community Energy have signed an energy capacity contract for a 22 MW battery storage project in Kern County, operational from early 2026.
The Ignitis Group is starting the construction of three battery energy storage systems in Lithuania, with a combined capacity of 291 MW and a total investment of €130mn.
Alinta Energy has appointed GenusPlus Group to build the first phase of the Reeves Plains Energy Hub Battery, a high-capacity storage facility designed to support grid stability in South Australia.
State Grid Wuzhong Power Supply Company announces the completion of the energy storage compartment at Tongli substation, a key step for the upcoming integration of a 300 MW shared storage power plant in Ningxia.
Globeleq and African Rainbow Energy finalise commercial agreements for a 153 MW energy storage project in South Africa, aimed at enhancing national grid stability and optimising peak energy management.
Estimated at 40.9 billion dollars in 2024, the global microgrid market is expected to grow at an average annual rate of 19.28% to reach 191.01 billion dollars by 2033, driven notably by innovative energy contracts.
The U.S. energy storage market set a historic record in early 2025, surpassing 2 GW installed in the first quarter despite increasing uncertainty regarding federal fiscal policies and tax credits.
The Sino-Moroccan joint venture COBCO has begun manufacturing essential lithium-ion battery components at its Jorf Lasfar plant, targeting a final annual capacity of 70 GWh, enough to equip one million electric vehicles.
Trianel teams with BKW and Luxcara to build a 900 MW lithium-iron-phosphate storage park in Waltrop, the first phase of a complex that could reach 1.5 GW and stabilise the German grid.
Blue Whale Energy partners with UNIGRID to deploy behind-the-meter storage systems adapted to constrained commercial and industrial urban areas in Southeast Asia.
Northvolt, recently placed under judicial administration, has received an indicative offer from a foreign investor to acquire its Swedish assets, signaling a potential imminent restart of its battery production units.
The frame agreement aligns Jinko ESS’s utility-scale storage technology with Metlen’s development pipeline, unlocking more than 3GWh across Chile and Europe while reducing delivery risk for grid operators.
Buffalo-based Viridi has obtained the cETLus mark for its RPS150 system, meeting the UL 9540 standard only days after a public battery fire-containment demonstration.
Tesla is building a giant electricity storage facility in Shanghai, China, signing a $560 million contract to meet growing demands on the urban electricity grid.
Envision Energy signs a turnkey contract with Kallista Energy for a 120 MW / 240 MWh energy storage project in Saleux, Hauts-de-France, marking its entry into France’s stationary battery market.