Net zero drive continues with next stage of CCUS clusters process


Twenty projects have been shortlisted for the next stage of the CCUS clusters process, handing industrial heartlands a boost while marking an “important step” closer towards a net zero economy for the wider UK.

Back in March, the government announced over 40 projects covering power, industrial carbon capture and hydrogen had met the eligibility criteria under the phase-2 cluster sequencing process. These have now been whittled down to 20, with the shortlist – unveiled on 12 August – featuring a host of projects with the potential to accelerate decarbonisation ambitions; realise economic benefits in the North West, North Wales, Teesside and Humber regions; kickstart the hydrogen economy; and put the wider UK on course to decarbonizing the power system by 2035, while maintaining security of supply.

Of these 20, four are hydrogen projects. Three would look to join up with the East Coast Cluster – bp’s H2Teesside, which is aiming to produce 1GW of CCUS-enabled blue hydrogen and start-up in 2027; Kellas Midstream’s H2NorthEast, which will strive to build a 1GW blue hydrogen facility, using North Sea gas already processed at the existing CATS Terminal; and the Hydrogen to Humber (H2H) Saltend project, Equinor’s 600MW low carbon hydrogen production plant which could help a number of key industries at Saltend Chemicals Park, as well as across the wider East Yorkshire area, to reduce their CO2 emissions by close to 1mn tonnes annually.

These shortlisted projects can now be considered for government funding support to join up with the clusters and use carbon capture technology to help decarbonise their businesses. Further information on the final confirmed projects for phase 2 is to be shared in “due course”.