UK Carbon Capture and Storage Market Research Report By Technology (Post-Combustion Capture, Pre-Combustion Capture, Oxy-Fuel Combustion, Direct Air Capture), By Application (Power Generation, Industrial Processes, Natural Gas Processing, Transport and Storage), By End Use (Energy Sector, Manufacturing Sector, Chemical Sector, Healthcare Sector) and By Method (Bioenergy with Carbon Capture and Storage, Mineralization, Enhanced Oil Recovery, Aquifer Storage)- Forecast to 2035

UK Carbon Capture and Storage Market Overview

As per MRFR analysis, the UK Carbon Capture and Storage Market Size was estimated at 233.1 (USD Million) in 2023.The UK Carbon Capture and Storage Market Industry is expected to grow from 271.74(USD Million) in 2024 to 1,170.24 (USD Million) by 2035. The UK Carbon Capture and Storage Market CAGR (growth rate) is expected to be around 14.195% during the forecast period (2025 - 2035)

Key UK Carbon Capture and Storage Market Trends Highlighted

The UK Carbon Capture and Storage (CCS) market is growing quickly because the government is very committed to reaching net-zero emissions by 2050. The Carbon Capture Usage and Storage (CCUS) Strategy is one example of this commitment. It lays out several ways to finance and promote investment in CCS technology. The growing focus on making businesses less carbon-intensive, especially in areas like power generation and manufacturing, is driving up the need for good carbon capture technologies. The UK's geographic advantages, such as its potential for offshore storage in the North Sea, also make it a good place to build large-scale CCS facilities.

Recent trends show that there is a significant increase in cooperation between the public and commercial sectors, which is helping to improve carbon capture technologies. More and more businesses are putting money into research and development to make absorbing carbon emissions more efficient and cost-effective. The UK government supports setting up innovation centres and sponsoring research to speed up the use of CCS technology in a variety of sectors. This trend fits with that. Also, more and more industries are aware of and ready to use carbon capture technology because of government rules and public expectations for sustainability.

There are several chances to combine CCS with renewable energy projects, especially to make energy-intensive processes more sustainable overall. The UK wants to be a leader in carbon capture technology, which sets the stage for future market growth. New technologies, like bioenergy with carbon capture and storage (BECCS), are expected to emerge, making this a dynamic space with much room for growth and implementation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

UK Carbon Capture and Storage Market Drivers

Government Initiatives and Policy Support

In the UK, governmental support for Carbon Capture and Storage is a major driver for the UK Carbon Capture and Storage Market Industry. The UK government has committed to reaching net-zero greenhouse gas emissions by 2050, and the Ten Point Plan for a Green Industrial Revolution outlines significant investments and funding for low carbon technologies. Specifically, the Department for Business, Energy & Industrial Strategy has allocated funds exceeding 1 billion GBP to advance Carbon Capture projects.

According to information from government sources, nine carbon capture projects are expected to be operational in the 2020s, potentially capturing up to 33 million tonnes of CO2 emissions annually by 2030. Such initiatives indicate a strong government backing that is vital for attracting investments and fostering technological innovation, positioning the UK as a leader in carbon capture and storage on a global scale.

Increasing Corporate Sustainability Goals

The corporate shift towards sustainability in the UK drives interest in the Carbon Capture and Storage Market Industry. A report from the UK’s Institute of Directors found that over 75% of UK businesses are prioritizing environmental sustainability as part of their long-term strategy. Major firms like BP and Shell are investing heavily in Carbon Capture technologies, with estimated spending in the billions. 

This corporate responsibility movement is vital, as businesses acknowledging their role in climate change are influencing the public and private sectors alike to develop and adopt carbon capture technologies, thus accelerating market growth.

Rising Awareness of Climate Change Impact

Public concern over climate change is rising sharply in the UK, greatly impacting the Carbon Capture and Storage Market Industry. A recent survey by the Carbon Trust indicated that over 80% of the UK population is more aware of climate change than ever before, influencing public policies and corporate strategies alike. The increasing frequency of climate-related events is also prompting the government and organizations to take proactive measures to reduce carbon emissions, highlighting the necessity for carbon capture solutions.This public awareness correlates with the demand for innovative technologies, making the UK market ripe for growth in carbon capture initiatives.

UK Carbon Capture and Storage Market Segment Insights

Carbon Capture and Storage Market Technology Insights

The UK Carbon Capture and Storage Market showcases significant growth within the Technology segment, fueled by advancements and various stratagems aimed at reducing carbon emissions. Technologies in carbon capture have been at the forefront of the UK’s commitment to sustainability and meeting carbon neutrality goals by 2050. Among these technologies, Post-Combustion Capture has emerged as a major player. This method, applied to existing fossil fuel power plants, allows for retrofitting systems without major infrastructure changes, making it a practical option within the UK energy sector. Pre-Combustion Capture, on the other hand, offers noteworthy benefits particularly in industrial processes, whereby carbon is captured before combustion occurs, leading to lower emissions upfront. 

This technology is particularly important as regions focus on transitioning to cleaner fuel sources and exploring hydrogen generation where carbon emissions need to be curtailed effectively. Oxy-Fuel Combustion technology stands out by using pure oxygen instead of air for combustion, which significantly enhances the efficiency of carbon capture from flue gases. This innovation positions the UK to leverage advanced technologies for its heavy industries, promoting eco-friendliness while retaining economic viability.Direct Air Capture, an emerging and innovative solution, extracts CO2 directly from the atmosphere. It is crucial for achieving negative emissions, especially in the UK where targets for reducing overall greenhouse gases are stringent. 

The growth and adoption of such technologies reflect a broader trend in the UK aiming to address climate change head-on. Each technology plays a distinct yet complementary role in the overarching strategy for carbon capture and storage, pointing to a future where the UK can harness these innovations to not only meet their emissions targets but also lead in carbon management on a global scale. This emphasis on innovation and development within the Technology segment clearly indicates a proactive approach towards achieving carbon neutrality in a relatively short timeframe, opening avenues for investment, job creation, and technological advancement across the industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Carbon Capture and Storage Market Application Insights

The Application segment of the UK Carbon Capture and Storage Market plays a crucial role in addressing climate change by utilizing advanced technologies to reduce carbon emissions across various industries. Power Generation is significant as it aims at retrofitting existing facilities with carbon capture technologies to enhance energy production while minimizing environmental impact. Industrial Processes contribute prominently to emissions, and implementing carbon capture solutions can facilitate the transition towards more sustainable manufacturing practices.Natural Gas Processing serves as a pivotal area where capturing carbon can aid in maintaining energy security while adhering to stringent emissions regulations. 

Additionally, the Transport and Storage aspect focuses on ensuring safe and effective delivery of captured CO2 to designated storage sites, which is critical for achieving long-term emission reduction goals. The UK's government has set forth ambitious targets and policies to support these applications, positioning the nation as a leader in sustainable practices and innovation. In essence, the insights gained from the Application segmentation reflect the essential contribution of these sectors in driving the overall momentum of the UK Carbon Capture and Storage Market as a strategic response to climate challenges.

Carbon Capture and Storage Market End Use Insights

The UK Carbon Capture and Storage Market is witnessing significant developments across various End Use segments, which include the Energy Sector, Manufacturing Sector, Chemical Sector, and Healthcare Sector. The Energy Sector plays a crucial role as it seeks to alleviate carbon emissions from fossil fuels, thereby aligning with national targets for reducing greenhouse gases. The Manufacturing Sector is increasingly adopting carbon capture technologies to enhance sustainability, which is driving innovation and creating opportunities for new processes.In the Chemical Sector, the implementation of carbon capture strategies is vital for producing low-carbon chemicals and integrating with existing processes, making it a critical area for growth. 

Meanwhile, the Healthcare Sector benefits from carbon capture initiatives by improving air quality within facilities, which is a growing concern in urban settings. As the UK government continues to invest in carbon capture technologies, these sectors are poised for substantial advancements, addressing both environmental goals and economic considerations to support a low-carbon future.The focus on reducing emissions across these diverse areas underscores the importance of the UK Carbon Capture and Storage Market and its segmentation for sustainable development initiatives.

Carbon Capture and Storage Market Method Insights

The Method segment of the UK Carbon Capture and Storage Market is pivotal in addressing carbon emissions and illustrates significant advancements in various techniques employed to capture and store carbon dioxide. Bioenergy with Carbon Capture and Storage (BECCS) is crucial as it not only generates renewable energy but also sequesters carbon, aligning with the UK's commitment to achieving net-zero emissions. Mineralization offers a natural and sustainable approach, converting CO2 into solid minerals, thereby reducing atmospheric carbon levels effectively.Enhanced Oil Recovery (EOR) remains significant, as it allows for improved oil extraction while simultaneously storing carbon, making it economically viable for many industries. 

Aquifer Storage is increasingly recognized for its potential, leveraging underground formations for both CO2 storage and groundwater protection. The interactions between these methods underscore a comprehensive strategy towards mitigating climate change, underpinned by ongoing Research and Development efforts and robust governmental policies aimed at fostering innovation within the UK Carbon Capture and Storage Market.As the sector evolves, it faces challenges related to infrastructure, public acceptance, and regulatory frameworks, presenting both risks and opportunities for future advancements.

UK Carbon Capture and Storage Market Key Players and Competitive Insights

The UK Carbon Capture and Storage Market is witnessing significant development as organizations seek to address the pressing need for reducing carbon emissions in response to climate change. Competitive dynamics within this market are shaped by the increasing support from the UK government for carbon capture initiatives, as well as rising public awareness regarding sustainability. Companies operating in this sector are striving to expand their technological capabilities and enhance their service offerings to capture carbon efficiently from industrial processes and power generation. The market is characterized by innovative partnerships, substantial investments in research and development, and strategic collaborations aimed at advancing carbon capture technologies. 

As firms compete to establish their presence, they are also aligning their goals with national and international climate targets, which are essential for ensuring a sustainable future and economic growth.Equinor has made significant strides in the UK Carbon Capture and Storage Market, positioning itself as a leading player through its strategic initiatives and expertise in energy transformation. The company’s strengths lie in its robust research and development activities, demonstrated by the successful implementation of pioneering carbon capture projects that showcase the efficacy of its technologies. Equinor’s focus on collaboration with governmental bodies, research institutions, and other industry players enhances its market presence and facilitates the sharing of innovations and best practices. The company also capitalizes on its substantial investment ability, enabling the development of large-scale carbon capture initiatives in the UK, which positions it favorably for future growth amidst a rapidly evolving regulatory environment aimed at decarbonization.

BP is another key player in the UK Carbon Capture and Storage Market, showcasing a comprehensive approach to carbon management through its innovative technologies and services. The company's strengths include a strong portfolio of carbon capture projects that align with the UK’s commitment to reduce greenhouse gas emissions. BP’s strategic investments in carbon capture and storage solutions reflect its commitment to sustainability and the energy transition. The company has been active in forming partnerships and collaborations, which have proven beneficial for expanding its capabilities in the region. Furthermore, BP’s focus on mergers and acquisitions has enriched its expertise and technological adeptness in carbon capture, positioning it well not only to contribute to the UK’s climate goals but also to meet the growing demand for sustainable energy solutions in the region. 

The overall market presence of BP within the UK showcases its dedication to innovation and leadership in carbon capture technology, ensuring that it remains at the forefront of efforts to mitigate climate change.

Key Companies in the UK Carbon Capture and Storage Market Include

• Equinor


• BP


• Linde


• National Grid


• Drax Group


• Wood


• Mitsubishi Heavy Industries


• University of Sheffield


• Centrica


• Finder Energy


• Carbon Clean Solutions


• Storegga


• TotalEnergies


• Simec Atlantis Energy


• Shell

UK Carbon Capture and Storage Market Industry Developments

In recent months, the UK Carbon Capture and Storage Market has seen significant developments, particularly with companies like Equinor, BP, and Drax Group leading initiatives. In October 2023, Drax Group announced plans to invest heavily in carbon capture technology, aiming for a significant reduction in emissions by 2030. The UK government recently unveiled a new funding scheme, enhancing support for Carbon Capture and Storage projects in line with its net-zero goals. Furthermore, Shell has partnered with TotalEnergies to advance their shared carbon capture project, a significant move that reflects the growing collaboration in the sector. In the past two years, notable advancements include the University of Sheffield launching a new Research and Development facility focused on innovative carbon capture technologies, a development announced in September 2022. 

The growth of the market is evident, with valuations of key players like Carbon Clean Solutions and Wood experiencing upward trends due to increased investments and supportive regulatory frameworks. Major projects, such as the Humber Industrial Cluster plan integrating carbon capture technologies, highlight the UK's commitment to establishing itself as a leader in carbon management. Overall, these developments are shaping a more robust carbon capture landscape in the UK.

UK Carbon Capture and Storage Market Segmentation Insights

Carbon Capture and Storage Market Technology Outlook

• Post-Combustion Capture


• Pre-Combustion Capture


• Oxy-Fuel Combustion


• Direct Air Capture

Carbon Capture and Storage Market Application Outlook

• Power Generation


• Industrial Processes


• Natural Gas Processing


• Transport and Storage

Carbon Capture and Storage Market End Use Outlook

• Energy Sector


• Manufacturing Sector


• Chemical Sector


• Healthcare Sector

Carbon Capture and Storage Market Method Outlook

• Bioenergy with Carbon Capture and Storage


• Mineralization


• Enhanced Oil Recovery


• Aquifer Storage

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	233.1(USD Million)
MARKET SIZE 2024	271.74(USD Million)
MARKET SIZE 2035	1170.24(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	14.195% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Equinor, BP, Linde, National Grid, Drax Group, Wood, Mitsubishi Heavy Industries, University of Sheffield, Centrica, Finder Energy, Carbon Clean Solutions, Storegga, TotalEnergies, Simec Atlantis Energy, Shell
SEGMENTS COVERED	Technology, Application, End Use, Method
KEY MARKET OPPORTUNITIES	Government funding and incentives, Collaborative research partnerships, Industrial applications for emission reduction, Innovations in capture technology, Development of storage infrastructure
KEY MARKET DYNAMICS	government regulations on emissions, technological advancements in CCS, investment from private sectors, public awareness and acceptance, international partnerships and collaborations
COUNTRIES COVERED	UK