UK CCS industry could be worth £100bn by 2050: OEUK

The UK carbon capture and storage (CCS) industry could be worth £20bn to the offshore oil and gas supply chain within the next ten years and £100bn ($121bn) by 2050, according to a study published by Offshore Energies UK (OEUK).

“Carbon capture and storage is going to be a key tool in our fight against climate change. It offers a huge opportunity for the UK offshore energy supply chain to help energy intensive industries cut emissions," OEUK supply chain and operations director Katy Heidenreich said in a statement. "“If we get this right, it could unlock £100 billion of work for UK manufacturing employers by 2050. This will support UK jobs, cut emissions, boost the economy and develop skills which can be exported globally."

The UK could store up to 78 gigatons of CO₂ - representing one of the largest storage capacities in Europe, with enough room to hold two centuries' worth of the country's current emissions. The UK also has the potential to export CCS technology and expertise, OEUK said.

However, the government needs to accelerate the second phase of its funding programme for decarbonising industrial clusters with CCS, the association said, and while the supply chain is suitably experienced, it is also "fragile and the UK is at risk of losing it to more attractive opportunities elsewhere in the world if it does not secure a first-mover advantage."

Harnessing the UK's CCS potential will primarily benefit communities in Aberdeen, Inverness, Liverpool, North Wales, East Anglia, Lincolnshire, Yorkshire and Teesside, OEUK said.