The United Kingdom is making strides in developing its carbon capture industry, with ambitious plans in the pipeline to reach net-zero carbon emissions. The government has committed substantial funding and support to kickstart this sector in the fight against climate change.
Government Commitment and Funding for Carbon Capture in the UK
In October 2024, the UK government approved £21.7 billion in funding for Track-1 clusters, marking the country’s first two sequestration sites in Teesside and Merseyside.
This investment is part of a broader commitment to capture and store 20 million tonnes of CO₂ annually by 2030. Additionally, the government has allocated £3.9 billion specifically for advancing CCUS projects in the 2025/2026 fiscal year.
Storing and Utilizing Carbon in the UK
The UK is developing carbon storage methods to help meet its 2050 net zero target – for more detail see Carbon Storage UK. Carbon capture and storage (CCS) involves collecting CO₂ and storing it underground, e.g. offshore under the North Sea or mineralized in basalt formations.
CO₂ utilization, though less developed, aims to turn captured CO₂ into products such as building materials (e.g. using CO₂ in concrete production), sustainable aviation fuel, or chemicals.
Economic and Environmental Impact of Carbon Capture in the UK
The carbon capture industry is expected to create employment opportunities. The NZT Power project alone is projected to generate over 3,000 construction jobs and around 1,000 permanent positions annually through 2050. Moreover, these initiatives are seen as important for reinvigorating industrial regions like Teesside and driving investment in local communities.
Future Outlook of Carbon Capture in the United Kingdom
Despite challenges, the UK government remains committed to developing its carbon capture industry. The Climate Change Committee (CCC) has emphasised that it “cannot see a route to net zero that does not include CCS”3. The energy from waste sector alone could potentially contribute between 5 and 8 million tonnes of carbon removals annually by 20502.
Direct Air Capture UK
Direct Air Capture (DAC) is starting to gain traction as an important technology in the UK’s efforts to combat climate change and achieve its net-zero ambitions with the UK government and private sector investing in its development.
DAC technology works by drawing in large quantities of air and passing it over specifically designed sorbent material layers that attract and capture carbon dioxide (CO₂) molecules. The captured CO₂ can then be permanently and safely stored underground or converted into climate-neutral carbon products, such as sustainable aviation fuel, contributing to a cleaner, greener future. (How Does Direct Air Capture Work?)
State of Direct Air Capture in the UK
The UK sees DAC as one piece of a broader approach to cutting emissions. It is especially relevant in addressing residual emissions that are hard to abate, such as those from agriculture, aviation, and certain industrial processes.
In 2023, the UK government announced funding support for carbon removal technologies, including DAC, through its Greenhouse Gas Removal (GGR) competition. This initiative aimed to support early-stage projects and feasibility studies. These ventures reflect a broader shift in the UK towards exploring a mix of mechanical and nature-based solutions for carbon removal.
As of 2025, the UK is making further progress in advancing DAC technology. The government has been actively supporting research and development through initiatives such as the Direct Air Capture and Greenhouse Gas Removal Innovation Programme2. This program has led to several promising projects that are pushing the boundaries of DAC technology and its applications within the UK context.
One notable project is the Direct Air Capture powered by Nuclear Power Plant, led by Sizewell C in collaboration with the University of Nottingham and other partners2.
This innovative approach aims to integrate DAC technology with nuclear power plants, potentially offering increased efficiency and reduced reliance on electricity compared to existing DAC systems. The project envisions a future where a scaled-up implementation could capture up to 1.5 million tonnes of CO₂ per year, nearly offsetting the UK’s entire emissions from railway transport2. Other DAC similar projects are also being considered.
Potential Impact of DAC in the UK
The development of DAC technology in the UK aligns with global climate goals and the growing recognition of the need for carbon dioxide removal. The Intergovernmental Panel on Climate Change (IPCC) estimates that by mid-century, 3-12 gigatons of CO₂ will need to be removed from the air annually to limit global warming to 1.5°C above pre-industrial levels (See: Why DAC?). DAC is expected to play a role in achieving this target.
As the UK continues to pursue its climate goals, Direct Air Capture is likely to play an increasingly important role in its carbon removal strategy. The country’s investment in research, development, and pilot projects positions it at the forefront of DAC innovation. While challenges remain, the progress being made in integrating DAC with existing energy infrastructure and developing more efficient capture methods shows promise.
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