UK Boosts Carbon Capture Ambitions with Fund Investment; Japanese Companies Participate
London, UK & Tokyo, Japan – July 9, 2025 – The United Kingdom has announced a significant new investment strategy to bolster its Carbon Capture, Usage, and Storage (CCUS) capabilities, with a particular focus on funding projects through a dedicated investment fund. This initiative aims to accelerate the deployment of CCUS technologies, a critical component in the UK’s net-zero emissions targets. Notably, Japanese companies are among the investors contributing to this vital effort, signaling a growing international collaboration in the climate technology sector.
The announcement, reported by the Japan External Trade Organization (JETRO) on July 9, 2025, details the British government’s commitment to channeling financial resources into promising CCUS projects. While the exact figures and the names of all participating companies were not immediately disclosed, the involvement of Japanese firms highlights the global recognition of the importance and potential of CCUS as a climate solution.
What is Carbon Capture, Usage, and Storage (CCUS)?
CCUS refers to a suite of technologies designed to capture carbon dioxide (CO2) emissions at their source, such as from industrial facilities like power plants or cement factories, or even directly from the atmosphere. Once captured, the CO2 can be:
- Stored: Permanently injected underground into geological formations, such as depleted oil and gas reservoirs or saline aquifers. This is often referred to as Carbon Capture and Storage (CCS).
- Used: Converted into useful products, such as building materials, fuels, or chemicals. This is known as Carbon Capture and Utilization (CCU).
Why is CCUS Important for Net-Zero Goals?
CCUS is considered a crucial technology for achieving net-zero emissions for several reasons:
- Decarbonizing Hard-to-Abate Industries: Certain industrial sectors, like cement production and steel manufacturing, inherently produce CO2 emissions that are very difficult to eliminate through other means. CCUS offers a viable pathway to decarbonize these essential industries.
- Negative Emissions: When CCUS is combined with bioenergy (BECCS) or deployed to capture CO2 directly from the air (Direct Air Capture or DAC), it can result in negative emissions – effectively removing more CO2 from the atmosphere than is emitted.
- Continued Use of Existing Infrastructure: For some sectors, CCUS can allow for the continued operation of existing energy infrastructure while significantly reducing their climate impact.
- Creating New Industries and Jobs: The development and deployment of CCUS technologies have the potential to foster new industries, create green jobs, and stimulate economic growth.
The UK’s Strategic Approach
The UK government has identified CCUS as a key pillar of its net-zero strategy. This new fund investment signals a more direct and impactful approach to supporting the commercialization and scaling of CCUS projects. By providing financial backing through a fund, the government can de-risk investments for private sector players, encouraging the development of large-scale CCUS infrastructure.
This strategy is likely to focus on supporting the development of CCUS “clusters,” which are geographically concentrated areas where multiple industrial emitters can share CO2 transport and storage infrastructure. This shared approach offers economies of scale and reduces the cost of deploying CCUS.
The Role of Japanese Companies
The participation of Japanese companies in this UK initiative is significant. Japan has been actively investing in and developing CCUS technologies, recognizing its importance for its own decarbonization efforts and its potential as an exportable technology. Japanese firms often possess expertise in areas such as:
- Advanced CO2 capture technologies: Developing more efficient and cost-effective methods for separating CO2 from flue gas.
- Pipeline construction and operation: Expertise in building and managing the complex transportation networks required for CO2.
- Geological storage and monitoring: Skills in identifying and managing suitable underground storage sites.
- Carbon utilization: Developing innovative ways to convert captured CO2 into valuable products.
The investment by Japanese companies in the UK’s CCUS projects can be seen as a win-win scenario. It allows the UK to leverage international expertise and capital, while providing Japanese businesses with valuable opportunities to gain experience and establish a foothold in a leading CCUS market. This collaboration also fosters the transfer of knowledge and technology, accelerating global progress in the fight against climate change.
Looking Ahead
This announcement marks a positive step forward for both the UK’s climate ambitions and the global development of CCUS. As the world grapples with the urgent need to reduce greenhouse gas emissions, technologies like CCUS will play an increasingly vital role. The involvement of international partners, such as Japanese companies, underscores the collaborative nature of this challenge and the shared commitment to building a sustainable future. Further details on the specific projects and the scale of investment are expected to be released in the coming months.
英政府、ファンド通じたCCSプロジェクトへの投資発表、日系企業も出資
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-07-09 05:30, ‘英政府、ファンド通じたCCSプロジェクトへの投資発表、日系企業も出資’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.