Carbon Catalyst Limited (CCL) are delighted to welcome the UK Government’s renewed and substantial backing for Carbon Capture, Utilisation and Storage (CCUS), as announced in the Chancellor’s Comprehensive Spending Review. This marks another milestone in the UK’s commitment to industrial decarbonisation and energy security, and strengthens the pathway for our next-generation carbon storage projects, Poseidon and Orion.
A Clear Signal of Confidence and Commitment
The allocation of £9.4 billion in capital funding for CCUS over the current Spending Review period sends a powerful signal to the market. It demonstrates not just policy intent, but delivery ambition. The government’s announcement to support storage capacity in the East Coast Cluster and HyNet, while unlocking progress for The Acorn Project in Scotland and the Viking CCS project in the Humber, confirms that the UK is firmly on the path to establishing a world-class carbon management ecosystem.
Importantly, this strong public backing sets the stage for the next wave of investment, laying the groundwork for Final Investment Decisions (FIDs) later in this Parliament. The alignment of policy, capital, and timing is critical, and the signal this sends to the private sector is clear, CCUS in the UK is not just viable, but vital.
Building on Strong Foundations
At Carbon Catalyst Limited, we see this moment as a pivotal inflection point. With the first four UK CCS clusters gaining traction, the door opens for a new generation of liberalised, cost-competitive carbon storage projects. Our Poseidon and Orion initiatives are at the forefront of this emerging wave, offering scalable, technically robust, and economically attractive carbon storage solutions in the UK Southern North Sea.
Both projects are designed with the long term in mind, to meet the needs of emitters and transport infrastructure providers across multiple UK regions, and to serve as flexible, high-capacity storage hubs that support national decarbonisation objectives. Our commitment is to help create a thriving, durable carbon storage market in the UK, one that delivers real emissions reductions while enabling industrial growth and low-carbon innovation.
Poseidon and Orion: Shaping the Next Chapter of UK CCS
Poseidon and Orion exemplify the opportunity that lies in the next phase of UK carbon storage:
- Poseidon: A strategically located offshore storage site in the Southern North Sea, Poseidon is well-positioned to provide long-term carbon storage for industrial emitters in the East and Southeast of England, as well as future imports via shipping.
- Orion: Located nearby, Orion offers complementary storage capacity and flexibility, enhancing the resilience and scalability of the UK’s future CO₂ infrastructure.
These projects reflect our commitment to early mover advantage, cost-efficiency, and technical integrity, values that are deeply embedded in how we develop and mature our CCS portfolio.
Collaboration at the Core
Delivering carbon storage infrastructure at scale requires deep collaboration, across government, industry, and finance. We are proud to be working with an outstanding group of partners, each bringing deep sectoral experience and complementary capabilities:
Together, we are actively progressing development work across multiple fronts, informed by shared ambition and a strong belief in the role CCS must play in the UK’s climate and energy strategy.
We extend our sincere thanks to these partners, and to the many stakeholders across industry and government who continue to champion the UK’s carbon capture future. It’s through collaboration that we will realise the scale, certainty, and system integration that CCS requires.
Why CCUS Matters Now
The role of CCUS in the UK’s industrial strategy is becoming clearer. As government policy sharpens and investment frameworks evolve, carbon capture and storage is positioned as a critical component in meeting net zero targets without undermining the UK’s energy resilience or industrial base.
For many emitters, particularly in sectors with limited near-term alternatives, storage infrastructure is not optional. It’s a necessary enabler of continued operation in a tightening regulatory environment. CCUS supports:
- Decarbonisation without deindustrialisation, preserving local employment and supply chains
- Sector resilience, especially for industries like cement, refining, and chemicals
- Flexibility for future integration with hydrogen, negative emissions, and cross-border CO₂ flows
The government’s financial commitment through the Spending Review reinforces this trajectory by:
- Providing capital certainty for cluster development
- Establishing market confidence for private investors
- Enabling a more predictable pathway to final investment decisions
For developers like Carbon Catalyst, it’s confirmation that storage is entering a delivery phase, not just a planning one.
UK Southern North Sea, A Logical Step Forward
The Southern North Sea offers a clear set of advantages for permanent CO₂ storage. These are grounded in:
- Mature subsurface knowledge, based on extensive historic production
- Available infrastructure corridors, suitable for repurposing
- Proximity to emitter bases in the East and Southeast of England
- Accessibility to shipping routes, enabling marine CO₂ transport
Poseidon and Orion were selected with this strategic logic in mind. Each project is designed to:
- Deliver technically secure, multi-decade storage
- Scale modularly to meet growing demand
- Serve both pipeline-connected emitters and imported volumes
- Integrate into a broader regional network for UK and international decarbonisation
This is not just about site selection. It’s about building a platform that supports future system needs, technically, commercially, and logistically.
A Market-Oriented Approach to Storage
The direction of travel in UK CCS is shifting toward a more open and competitive model. While early clusters have relied on strong state support, the next generation of projects will need to:
- Compete on cost and delivery
- Offer commercial clarity to emitters and midstream operators
- Attract capital on conventional infrastructure terms
Carbon Catalyst was set up to work within this model. Our storage assets are designed to be:
- Cost-efficient and financeable, with lean structures and clear economics
- Flexible in configuration, adaptable to both pipeline and marine-based supply
- Operated independently, with clear commercial interfaces for emitters and transport providers
We see increasing demand from emitters for storage access that is:
- Predictable on timing
- Transparent on pricing
- Scalable to align with evolving carbon management needs
Government support remains important, but ultimately the success of UK CCS will rest on projects that make commercial sense. That’s where Poseidon and Orion are positioned to deliver.
CCUS: Central to UK Net Zero and Energy Security
This week’s announcement underscores that CCUS is not an optional add-on, it’s a central pillar of the UK’s strategy to reach Net Zero by 2050, while enhancing energy system resilience and industrial competitiveness.
We at Carbon Catalyst Limited are proud to be contributing to this national mission. With government policy aligning, investment appetite growing, and project momentum building, we are more committed than ever to delivering storage solutions that work, for emitters, for industry, and for the UK as a whole.