Carbon capture development costs could surpass £40bn by 2035, trade body says
The cost of development of clean hydrogen and greenhouse gas removals could surpass £40bn by 2035, according to a new report by the UK’s carbon capture trade body.
The report by the Carbon Capture and Storage Association (CCSA), found that around 85 per cent of the lofty cost is expected to be spent on onshore power generation – including industrial capture and hydrogen production plants.
Backed by the Department for Business, Energy and Industrial Strategy (BEIS) and the Energy Industries Council (EIC), the report has urged the UK to level up regions through Carbon Capture, Utilisation and Storage (CCUS) supply chains.
“Due to geographical advantages and world-leading skills and expertise, the UK has a unique opportunity to become a global leader in the development of CCUS,” CCSA UK office lead Olivia Powis said.
The UK government has already pledged a ‘green’ recovery in the wake of the pandemic and Brexit, which could include injecting money into the sector on the road to net zero.
The successful rollout of the carbon capture tech could bolster UK supply chains, the report said, which in turn would offer more jobs – providing the right policy is in place first.
“The next decade will be critical for CCUS deployment and by implementing the recommendations in today’s report, we have the opportunity to create a strong UK supply chain, providing significant domestic jobs and growth,” Powis explained.
“This will boost the UK’s prosperity and make a significant contribution to the government’s levelling up agenda, whilst at the same time creating important export opportunities for UK companies in a global market estimated to be worth several hundreds of billions of pounds by 2050.”