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:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

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.

Nightpeak Energy has launched commercial operations of Bocanova Power, a 150 MW battery storage facility near Houston, to meet rapidly growing energy demand in Texas.
Neoen has launched construction of its first long-duration battery in Muchea and commissioned the second stage of Collie Battery, bringing its storage capacity in Western Australia to 3,145 MWh.
Ottawa invests CAD22mn ($16.1mn) to support eight technology initiatives aimed at strengthening innovation, local production, and competitiveness in the country's battery supply chain.
Neoen begins construction of its first six-hour discharge battery in Western Australia and commissions the second phase of Collie, surpassing 3 GWh of storage capacity in the State.
Transgrid plans to contract up to 5 GW of grid-forming batteries to strengthen the stability of New South Wales’ electricity network during the energy transition.
The US energy storage market set a quarterly record with 5.6 GW installed, driven by utility-scale projects despite ongoing regulatory uncertainty.
Storage provider HiTHIUM will supply 2GWh of batteries to Solarpro for multiple large-scale projects across the Balkans and Central Europe.
The three Japanese groups announced two new high-voltage battery projects in Shizuoka and Ibaraki prefectures, bringing their joint portfolio to four facilities with a combined capacity of 180MW.
EVE Energy seals a 500MWh strategic agreement with CommVOLT in Europe for commercial and industrial storage at Solar & Storage Live UK 2025, as its five MWh direct current system enters deployment.
Energy Vault Holdings has secured $50mn in debenture financing, complementing a $300mn preferred equity investment, to support the development of its large-scale energy storage projects.
Grenergy reported €86mn in EBITDA in the first half of 2025 and raised its investments to €421mn, supported by increased energy sales and major storage operations.
The 400 MWh energy storage system installed by RWE in Limondale becomes the longest-duration grid-connected battery in Australia, with full commissioning expected by the end of the year.
A steel site in Taizhou now hosts Jiangsu’s largest behind-the-meter energy storage system, with 120 MW of output and 240 MWh of capacity, developed by Jingjiang Taifu New Energy.
Braille Energy Systems will directly integrate the distribution of its lithium battery line for drag racing, previously managed by Tony Christian Racing, consolidating its motorsport operations starting October 1.
NorthX Climate Tech commits $1.6mn to three Canadian energy storage firms, supporting the development of localised grid solutions in British Columbia and Alberta.
Eni has launched an industrial project with Seri Industrial to produce lithium iron phosphate batteries in Brindisi, targeting a capacity of more than 8 GWh per year.
OCI Energy has finalised construction financing with ING for the Alamo City project, a 480 MWh battery to be operated by CPS Energy from 2027 in Bexar County, Texas.
Palladio Partners and Voltfang join forces to deploy large-scale energy storage systems in Germany, targeting EUR250mn ($267mn) in investments by the end of 2029.
EVE Energy has commissioned in China a 400MWh energy storage system based on 628Ah cells, a world first that paves the way for large-scale industrialisation of ultra-high-capacity batteries.
GridStor has acquired a 100 MW battery storage project in Arizona from Strata Clean Energy, under a 20-year tolling agreement with Arizona Public Service to meet rising power demand.