OEUK pushes for UK carbon capture funding amid budget concerns

Britain’s trade body for the offshore energy industry Offshore Energies UK (OEUK) has urged the UK government to stay committed to supporting additional carbon capture, usage, and storage (CCUS) projects as concerns mount over potential funding cuts in the upcoming comprehensive spending review (CSR).

The industry body is pressing the government to honor its pledge to back two Track 2 CCUS projects, Viking in the North East of England and Acorn in Scotland, which could drive over £25 billion (around $31,4 billion) in investment by 2035 and create more than 30,000 jobs, said OEUK.

OEUK has also called for the government to maintain existing spending on Track 1 carbon capture projects and provide a clear funding framework for Track 2 developments, as well as future projects beyond the current track system.

The UK has already committed to two Track 1 projects, Hynet in Merseyside and the East Coast Cluster in Teesside, which aim to capture up to 20 million tonnes of CO2 annually by 2030 from industrial emitters, including power plants and hydrogen production facilities.

However, recent reports suggest that Track 2 funding could be deprioritized due to budgetary pressures. OEUK warns that scaling back investment would undermine industrial decarbonization efforts, economic growth, and job security in key industrial regions.

According to the Office for National Statistics (ONS), UK industrial sectors such as chemicals and cement have seen sharp declines in output – 38% and 40%, respectively, over the past four years. OEUK argues that carbon capture is vital for the future of these industries, enabling them to meet net-zero targets without sacrificing competitiveness.

“Carbon capture technology can help future-proof the UK’s heavy industries and their workers. We ask the government to hold true to its