Aggregate Industries comments on UK Government's £22bn carbon capture funding

The announcement of the £21.7 billion funding has however been met with criticism from some climate campaigners. The fear is that the growing sector of CCUS technology could prolong the use of fossil fuels, whilst poaching funding and resources from other vital endeavours such as renewable energy. Additionally, doubts have been raised about the long-term viability of this relatively unknown technology.

Nevertheless, investing in CCUS is a significant step forward in addressing certain carbon-intensive industrial processes such as building materials and chemical production). While these industries continue to focus on reducing carbon emissions via carefully developed innovations, it is recognised that these alone will not deliver the desired Net Zero outcomes.

The North West and North East of England, key areas within Britain's industrial heartlands, are where a significant proportion of industry resides. As such, they have been selected to receive major funding for carbon capture and storage clusters within Teeside and Merseyside.

One of the key building materials produced close to these clusters is cement, which globally is one of the largest industrial sources of CO₂ emissions, accounting for around eight per cent of global emissions from its four billion tonnes produced annually. With an average of 8.5 million tonnes of cement produced annually in the UK , it is important as a nation leading decarbonisation efforts we must deploy serious substantial funds towards the deployment of advanced CCUS technologies in this particular arena.

As a cement manufacturer which produces an average of one million t annually from our Cauldon plant in Staffordshire, the inherent challenges of how we sustainably produce one of the world’s most critical commodities are of utmost importance and focus for Aggregate Industries and the wider Holcim group.

Beyond green campaigners, there is reticence surrounding carbon capture amongst the general public also. We recognise the concerns raised by campaigners and the public alike – particularly around its costs, perceived reliance on taxpayer funding and potential to detract from other critical climate solutions. As a responsible business committed to transparent and sustainable practices, we aim to address some of the key questions and discussions surrounding CCUS below.

There is a concern that CCUS is effectively a silver bullet which will result in other decarbonisation levers being overlooked. Just as carbon offsetting should be avoided as a default option, CCUS should equally be avoided within industrial processes where there are achievable ways to limit or eradicate carbon emissions. Yet while we pursue the use of alternative fuels at the Cauldon plant and look to replace virgin aggregates with recycled materials such as waste pottery from our neighbouring Staffordshire ceramics businesses (enabling us to develop cement mixes with 30% less embodied carbon), the challenge of decarbonising the pivotal chemical reaction which turns limestone into lime and CO2 remains. This is why – although we continue to work to develop short-term solutions without compromising cement quality – carbon capture is invaluable for the cement industry’s medium- and long-term sustainable development.

One common belief is that CCUS is inefficient and expensive. However, advancements in technology and substantial investments within the cement industry have already led to continuous enhancements and cost reductions. Lessons from other green technologies such as batteries and solar energy provide a clear parallel. Initially, these technologies faced high costs and scepticism. Yet as they were adopted more widely and investments scaled, their costs fell dramatically. For instance, the cost of solar photovoltaic systems has dropped by over 80% in the past decade , while the price of battery storage has plummeted, making electric vehicles and renewable energy more accessible. Although CCUS operates differently, a similar cost curve is expected as more companies adopt the technology, supported by increased investments and shared innovation across the world’s leading nations. With time, economies of scale and improved efficiencies will make CCUS a more cost-effective solution for carbon-intensive industries.

Another concern is that CCUS is unproven and risky. Yet successful and safe implementations elsewhere in other countries, such as Norway’s Equinor project, demonstrate its compelling viability. The UK has a natural advantage thanks to our position as an island nation with abundant natural resources for off-shore carbon storage. Many of our old oil and gas fields, which safely stored natural gas for millions of years, can now be repurposed for long-term carbon storage. These reservoirs are not only abundant, but also well-mapped, providing a reliable foundation for CCUS infrastructure. Additionally, the UK benefits from having world-leading engineering companies and stringent environmental and safety regulations, ensuring that CCUS projects are implemented to the highest standards. The recent funding announcement signals the UK’s commitment to leverage all of these advantages to lead the global effort in reducing industrial emissions.

A promising example of how CCUS is being implemented to tackle industrial emissions is the Peak Cluster project, in which Aggregate Industries is proud to play a key role. As the largest cement decarbonisation initiative in the world, Peak Cluster exemplifies how industry and government can collaborate to achieve significant environmental benefits. The project will safely and efficiently capture and transport carbon dioxide emissions from the cement and lime industry across Derbyshire, Staffordshire and Cheshire, before permanently locking it away beneath the eastern Irish Sea. From 2031, it is projected to remove over three million t of CO₂ emissions annually , marking a significant step forward in decarbonising these critical sectors.

The recent funding announcement is a positive step forward in advancing the UK’s sustainability goals and demonstrates the government’s commitment to driving innovation in carbon reduction technologies. This investment in CCUS represents a pivotal moment for industries like ours, enabling the decarbonisation of hard-to-abate sectors and supporting the UK’s ambitious net zero targets.

As a business at the forefront of this transformation, we are proud to collaborate with our industry peers and the government to turn this vision into reality. Together, we are working to ensure that CCUS becomes an effective and scalable solution for reducing industrial emissions, paving the way for a cleaner, greener world.

Read the article online at: https://www.worldcement.com/europe-cis/08012025/aggregate-industries-comments-on-uk-governments-22bn-carbon-capture-funding/