UK Invests £9.4 Billion in Carbon Capture to Accelerate Climate Goals
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📰 The quick summary: The UK’s 2025 Spending Review allocates £9.4 billion for carbon capture projects through 2029, enabling more efficient CO2 storage and supporting additional CCS hubs planned for the 2030s.
📈 One key stat: The UK has committed up to £21.7 billion over 25 years to support five carbon capture and storage hubs, demonstrating a significant long-term investment in climate technology.
💬 One key quote: “enfinium welcomes the UK Government’s announcement today of increased funding for carbon capture, alongside further backing for Wales in its efforts to transition to net zero,” said Mike Maudsley, CEO of enfinium.
1️⃣ The big picture: The UK has just unveiled its 2025 Spending Review, significantly boosting investments in carbon capture technology. Chancellor Rachel Reeves announced major funding increases for the Department for Energy Security and Net Zero, with carbon capture and storage (CCS) receiving substantial financial backing. The government is adding £9.4 billion in capital expenditures through 2029, focused on maximizing CO2 storage capacity in existing CCS hubs while supporting the development of two new projects – Acorn in northeast Scotland and Viking in the Humber region. This spending plan represents the first budget priorities set by the new Labour administration.
2️⃣ Why is this good news: This investment signals a strong commitment to developing climate technology infrastructure across the UK. The additional funding will accelerate the creation of industrial carbon capture clusters, helping hard-to-abate sectors reduce emissions while creating green jobs. Support for new CCS hubs in Scotland and the Humber region extends these benefits to more communities and helps diversify the UK’s low-carbon industrial base. Projects like enfinium’s Parc Adfer facility in North Wales can now move forward with plans to remove up to 120,000 tonnes of carbon annually from the atmosphere. By backing both operational improvements at existing sites and development of new facilities, the funding creates a solid foundation for the UK’s carbon capture industry.
3️⃣ What’s next: Final investment decisions for the new Acorn and Viking projects are expected later in the current parliamentary term. These decisions will depend on project readiness and cost-effectiveness evaluations. Meanwhile, industry players will begin implementing carbon capture technologies at the supported facilities, with operations expected to scale up through the 2030s.
Read the full story here: Carbon Herald – UK Spending Review 2025 Sees Increased Investments In Carbon Capture
