With £9.4 billion earmarked in funding, Carbon Capture, Usage and Storage (CCUS) has been positioned as a critical net zero tool, and a driver of industrial regeneration, skills development and international collaboration. Duncan Lugton, head of policy and impact at the Institute of Chemical Engineers (IChemE), explores what this means for UK jobs, industry and potential for global leadership in clean energy.
Carbon Capture, Usage and Storage (CCUS) is firmly embedded in the UK Government’s Industrial Strategy as a cornerstone of its vision for a clean energy economy.
The strategy identifies CCUS as one of the frontier clean technologies, alongside wind, hydrogen, nuclear and fusion, where the UK has the greatest potential for growth, innovation and global leadership.
The government’s increased commitment to CCUS is underpinned by a capital allocation of £9.4 billion over the current Spending Review period[1]
This funding will support large-scale projects such as the East Coast and HyNet clusters, maximise use of UK storage capacity and help attract private investment into a growing supply chain.
Critically, the strategy positions CCUS as not just an emissions reduction tool, but as a driver of industrial regeneration.
By targeting development in key industrial heartlands and aligning with existing energy expertise including the oil and gas workforce, it aims to create thousands of high-quality jobs in engineering, construction and operations.
This reflects the broader ambition to revitalise communities while delivering a significant contribution to the Government’s net zero ambitions.
The strategy also highlights the importance of international collaboration, including enhanced cooperation with the EU on technologies including hydrogen and CCUS. Strengthening these links will be vital for cost reduction, knowledge sharing and export growth as the global race to decarbonise intensifies.
However, ambition must be matched with clarity on delivery mechanisms. IChemE stresses the need for stable market frameworks, robust regulatory guidance and clear long-term signals to unlock sustained private investment.
Continued support for skills development, especially through apprenticeships and reskilling initiatives, will also be essential to building a capable workforce ready to deliver these projects at scale.
Chemical engineers are at the heart of CCUS, from developing new capture materials and optimising process designs, to ensuring safety, reliability and integration with wider energy systems. IChemE members are already playing a central role in advancing CCUS in industry, academia and government.
As the strategy moves to implementation, IChemE will continue to engage with policymakers, industry leaders and partners to ensure the UK’s approach to CCUS is both technically sound and economically viable. By embedding engineering expertise into policy and delivery, we can ensure that carbon capture contributes meaningfully to the UK’s goals for sustainability, competitiveness and inclusive industrial growth.
To find out more about how IChemE can help translate strategy into tangible outcomes for industry society and the environment, see here.
[1] https://assets.publishing.service.gov.uk/media/68587856b46781eacfd71de4/industrial_strategy_clean_energy_industries_sector_plan.pdf
