As the United Kingdom advances toward its 2050 net-zero emissions target, Carbon Capture and Storage (CCS) technology has emerged as a pivotal component in the national decarbonisation strategy. CCS, which involves capturing carbon dioxide emissions at the source and storing them underground to prevent release into the atmosphere, offers a promising solution for reducing greenhouse gas emissions from industrial processes and power generation. This article provides a comprehensive feasibility analysis of the UK’s CCS potential, infrastructure, regulatory framework, and the role of feasibility study consultants in guiding strategic investment and policy decisions.
The Imperative for CCS in the UK
The UK government’s ambitious climate targets, coupled with its legally binding commitment to net zero, necessitate significant reductions in emissions across all sectors. While renewable energy continues to grow rapidly, hard-to-abate sectors like cement, steel, chemicals, and gas-fired power plants still emit substantial CO₂. For these industries, CCS is among the few viable options to mitigate emissions without ceasing operations entirely.
Moreover, the Climate Change Committee (CCC) has identified CCS as critical to achieving the UK’s carbon budget targets. Without widespread adoption of CCS, the UK would likely miss its 6th Carbon Budget, which covers the period 2033–2037. Recognising the urgency, the government has outlined support mechanisms, including the £1 billion CCS Infrastructure Fund and the designation of CCS as a strategic national priority.
This context has significantly increased demand for feasibility study consultants, who provide essential insights into the technical, financial, and environmental viability of CCS projects across the UK. Their expertise is critical in helping stakeholders—from government agencies to private investors—evaluate project risks, select optimal sites, and align strategies with regulatory expectations.
Geological Potential and Storage Capacity
The UK benefits from a unique geological advantage in its CCS journey. The North Sea, once dominated by hydrocarbon extraction, now presents a high-potential area for CO₂ storage, with depleted oil and gas fields and deep saline aquifers offering significant capacity.
The British Geological Survey (BGS) estimates that the UK continental shelf could theoretically store over 78 billion tonnes of CO₂, equating to hundreds of years of current UK emissions. Key storage sites include:
- Endurance field in the Southern North Sea, identified as a prime candidate for the Northern Endurance Partnership (NEP).
- Acorn project in Scotland, aiming to repurpose oil and gas infrastructure for CO₂ injection.
- Liverpool Bay and the East Irish Sea, offering close proximity to heavy industrial clusters in the North West.
These opportunities make the UK one of the most promising regions globally for CCS, but the complexity of offshore development demands robust analysis and planning.
CCS Infrastructure Development and Cluster Approach
Rather than developing isolated projects, the UK is pursuing a cluster-based approach to CCS. This strategy focuses on geographically grouping emitters and connecting them to shared CO₂ transport and storage infrastructure. This enhances cost-effectiveness and accelerates deployment.
Currently, four industrial decarbonisation clusters are prioritised:
- Humber and Teesside (East Coast Cluster) – The UK’s largest and most emissions-intensive industrial area.
North West Cluster – Anchored by the HyNet project, targeting hydrogen production and CO₂ storage. - Scotland (Acorn Project) – Utilizing existing oil and gas assets and pipelines.
- South Wales Industrial Cluster – At a more nascent stage, requiring additional feasibility assessment.
These clusters represent over half of the UK’s industrial emissions and are set to receive government support through the Track-1 and Track-2 sequencing process. Feasibility assessments within these clusters are essential to determine the optimal integration of pipelines, compressor stations, and storage wells.
Role of Feasibility Study Consultants
Developing CCS infrastructure involves numerous interrelated factors—geology, engineering, regulatory compliance, stakeholder engagement, and financial modelling. Feasibility study consultants play an indispensable role in navigating this complexity. Their services typically include:
- Site characterisation and geological analysis for storage suitability.
- Techno-economic modelling, including capex/opex estimation, lifecycle cost analysis, and carbon abatement costs.
- Regulatory and permitting guidance, ensuring compliance with the Environment Agency and Health and Safety Executive standards.
- Risk assessments, identifying operational, environmental, and financial risks across the CCS value chain.
- Stakeholder management, facilitating coordination between public authorities, private investors, and local communities.
In addition, consultants assist in scenario planning—modeling various market and policy conditions to inform investment decisions. Their input is vital to both public sector planning and private sector project finance.
Economic Viability and Investment Climate
From a financial standpoint, CCS remains a capital-intensive venture, especially in the early phases of infrastructure development. Key challenges include high upfront costs, uncertain long-term revenues, and technology risks. However, the UK’s policy landscape is becoming increasingly supportive.
The introduction of CCS business models, such as the Industrial Carbon Capture (ICC) and Dispatchable Power Agreements (DPA), aims to de-risk investments by offering predictable revenue streams. These mechanisms are modelled on the successful Contracts for Difference (CfD) framework used in the offshore wind sector.
The UK government’s £20 billion funding commitment to CCS projects, announced in the 2023 Spring Budget, has catalysed private sector interest. Major energy companies, including BP, Shell, and Equinor, are already partnering in key CCS clusters. Nonetheless, these investors often rely heavily on the due diligence and guidance of feasibility study consultants to assess ROI and bankability before committing to large-scale investment.
Regulatory and Legal Framework
The regulatory framework for CCS in the UK is relatively advanced, with a comprehensive set of legislation covering exploration, operation, monitoring, and decommissioning. Key elements include:
- Energy Act 2008 – Establishes the legal basis for offshore CO₂ storage licensing.
- Offshore Petroleum Licensing (Offshore Storage) Regulations 2010 – Details the storage permit process.
- Environmental Permitting Regulations 2016 – Governs the capture and compression phases.
Moreover, the UK aligns with the EU Directive on the Geological Storage of Carbon Dioxide, even post-Brexit, ensuring adherence to global best practices. However, regulatory complexity and slow permitting timelines remain concerns raised by project developers and consultants alike.
To improve clarity and streamline processes, feasibility study consultants often work in tandem with legal advisors and planning authorities to map out viable regulatory pathways, reduce compliance risks, and shorten development timelines.
Public Perception and Environmental Considerations
Public acceptance of CCS projects is crucial to their success. Concerns over environmental impact, safety of storage, and transparency can slow or derail projects. Therefore, robust community engagement and Environmental Impact Assessments (EIA) are integral to the feasibility phase.
Feasibility study consultants often incorporate environmental modelling and stakeholder consultation into their scope of work to ensure projects align with both national objectives and local interests. This helps build public trust and reduce opposition during planning approvals.
Future Outlook and Recommendations
The UK is well-positioned to become a global leader in CCS, thanks to its geological resources, existing offshore infrastructure, and strong policy support. However, realising this potential requires coordinated investment, sustained political will, and rigorous planning.
Key recommendations for stakeholders include:
- Accelerating permitting timelines through streamlined regulatory processes.
- Expanding public-private partnerships to share risk and leverage private capital.
- Increasing transparency in the Track-2 cluster selection process to maintain investor confidence.
- Encouraging innovation in carbon capture technologies to reduce operational costs.
- Empowering feasibility study consultants to conduct early-stage, independent assessments that can de-risk larger infrastructure programmes.
As CCS moves from vision to reality in the UK, the ability to thoroughly assess feasibility—across technical, economic, and social dimensions—will be the foundation upon which successful projects are built.
In conclusion, Carbon Capture and Storage represents a crucial pathway for the UK’s net-zero ambitions. The country’s unique offshore storage potential, strong regulatory foundation, and emerging cluster strategy are encouraging signs. However, successful deployment hinges on detailed feasibility planning. Through the expert guidance of feasibility study consultants, the UK can reduce uncertainty, attract investment, and lead the world in industrial decarbonisation.