ENB Pub Note: Net Zero is an energy policy tool promoted by the left, and the UK has spent billions on this initiative to control the population and the electrical system. Examining the grid failures in Spain, Portugal, and France is crucial, as the grid cannot withstand the physics and fiscal implications of the net-zero mandates. As the UK continues down this road, look to the Bank of London for bankruptcy.
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Carbon Capture, Usage, and Storage (CCUS):
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£21.7 Billion Commitment: In October 2024, the UK government pledged up to £21.7 billion over 25 years to fund CCUS projects, primarily for two carbon capture clusters in Merseyside and Teesside. These projects aim to capture and store 8.5 million tonnes of CO2 annually by 2028, with a long-term goal of 20–30 million tonnes per year by 2030. This investment is expected to attract £8 billion in private investment, create 4,000 direct jobs, and support 50,000 jobs in the long term.
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Additional £8 Billion Contingent Liability: In March 2025, the government set aside £8 billion as a contingent liability to cover risks associated with CCUS, such as CO2 leaks or financial underperformance. This acts as an insurance policy for investors and is not expected to be fully drawn upon but reflects the high-risk nature of the technology.
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Industrial Carbon Capture (ICC): The 2024 Autumn Budget allocated £3.9 billion specifically for CCUS Track-1 projects in 2025–2026, including support for 11 green hydrogen projects integrated with carbon capture.
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Other Net Zero Innovation and Clean Energy Programs:
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Net Zero Innovation Portfolio (NZIP): This portfolio funds low-carbon technologies, with specific allocations including:
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£20 Million for CCUS Innovation 2.0 Programme: Supports 15 innovation projects and 10 feasibility studies for next-generation CCUS technologies deployable by 2030.
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£5 Million for Accelerating CCS Technologies (ACT) 3: An international initiative to mature CCUS technologies.
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£60 Million for Direct Air Capture (DAC) and Greenhouse Gas Removal (GGR): Aims to support 15 demonstration plants by 2025.
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£30 Million for Hydrogen BECCS Innovation Programme: Funds bioenergy with carbon capture and storage (BECCS) to produce hydrogen from biogenic feedstocks.
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Industrial Energy Transformation Fund (IETF): In January 2025, £51.9 million was awarded to 25 businesses for emissions-cutting projects, including heat pumps and carbon capture, with industry covering two-thirds of the costs. The fund continues with £163 million allocated from 2025–2028.
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Great British Energy: The 2024 Autumn Budget allocated £125 million in 2025–2026 for this publicly owned clean energy company to accelerate renewable energy investment.
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Electric Vehicle (EV) Infrastructure: Over £200 million in 2025–2026 for EV charging points, plus £120 million for plug-in vehicle grants and wheelchair-accessible electric vans.
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Automotive Sector Support: £2 billion for zero-emission vehicle manufacturing and supply chains.
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Departmental Budget Increases:
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Department for Energy Security and Net Zero (DESNZ): The DESNZ budget increased from £6.4 billion in 2023–2024 to £14.1 billion in 2025–2026, a 22% rise, partly to fund CCUS and hydrogen projects.
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Department for Environment, Food and Rural Affairs (Defra): Budget rose from £6.8 billion in 2023–2024 to £7.5 billion in 2025–2026, supporting Net Zero-related initiatives like biomass and land use.
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Historical and Planned Spending:
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2021–2025 Spending Review: Approximately £26 billion in public sector funding was committed for green plans, including CCUS, hydrogen, and energy efficiency, with over £60 billion expected from private investment.
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Energy Efficiency (2022–2025): £6.6 billion was committed for energy efficiency in buildings and industry, with an additional £6 billion planned from 2025 onward.
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Overall Net Zero Cost Estimate: The Office for Budget Responsibility estimated in July 2021 that reaching Net Zero by 2050 could cost £321 billion, or roughly £10 billion annually, largely funded by taxpayers.
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International Climate Finance:
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The Foreign, Commonwealth and Development Office (FCDO) is forecast to spend over £2 billion on international climate action in 2024–2025, down from the previous government’s estimate of £2.5–2.8 billion. Some posts on X claim £11.6 billion is spent on overseas climate aid, but this figure lacks corroboration from official sources.
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High Costs and Risks: The Public Accounts Committee warned in February 2025 that the £21.7 billion CCUS investment is a gamble on unproven technology, with no UK examples operating at scale and concerns about consumer bill impacts. International examples suggest CCUS may capture less carbon than expected, and recent evidence indicates liquid natural gas used in some projects may leak more greenhouse gases than previously thought.
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Fossil Fuel Concerns: Critics, including Greenpeace UK and Friends of the Earth, argue that CCUS, particularly for blue hydrogen projects, extends reliance on fossil fuels, with 81% of Track-1 project emissions tied to fossil gas use.
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Public Sentiment: Posts on X reflect skepticism, with some users calling CCUS “nonsense” and citing figures like £22 billion as wasteful, though these align with official announcements.
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Policy Shifts: The Labour government’s 2024 Autumn Budget reaffirmed Net Zero commitments, but the Conservative Party, under Kemi Badenoch in March 2025, withdrew support for the 2050 target, citing affordability concerns.
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Direct CCUS Funding: £21.7 billion (2024–2049) + £8 billion contingent liability + £3.9 billion (2025–2026) = £33.6 billion (noting the contingent liability may not be fully spent).
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Other Net Zero Projects (2025–2026): Approximately £14.1 billion (DESNZ) + £7.5 billion (Defra) + £125 million (Great British Energy) + £320 million (EV support) + £163 million (IETF) + £2 billion (automotive) = ~£24.2 billion for one year, with additional smaller programs like NZIP (£115 million for specific initiatives).
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Long-Term Estimate: The £321 billion total cost to 2050 suggests an average of £10–12 billion annually, though annual spending varies based on project timelines and private investment.
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Figures are primarily drawn from government announcements, budgets, and reports from 2023–2025, with some variation in timelines (e.g., 2025–2026 vs. 25-year commitments).
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Private investment significantly offsets public costs, with £8 billion expected for CCUS alone and £60 billion projected for broader green plans by 2025.
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Costs are subject to change based on project performance, technological advancements, and policy shifts, especially given the 2024 downgrade of CCUS targets from 20–30 million tonnes to an unspecified lower figure.
Italian offshore engineering and construction giant Saipem has won a contract from Eni for work on the Liverpool Bay CCS project in the UK.
The value of the contract is estimated approximately €520m ($592m) over the three years required to complete the project.
The Liverpool Bay CCS project will serve the HyNet industrial cluster, situated in one of the UK’s most energy-intensive industrial districts.
Saipem’s scope of work concerns the EPC and assistance to the commissioning of a new CO2 electrical compression station. This new facility will be integrated with both the offshore and onshore segments of the overall development.
The gas compression and treatment facility will allow for permanent CO2 storage in offshore depleted fields under Liverpool Bay.
This comes less than a week after Eni reached the financial close with the UK Government’s Department of Energy Security and Net Zero for the project.
The Liverpool Bay CCS project will operate as the backbone of the HyNet Cluster to transport carbon dioxide from capture plants across the North West of England and North Wales through new and repurposed infrastructure to safe and permanent storage in Eni’s depleted natural gas reservoirs, located under the seabed in Liverpool Bay.
The project itself foresees the efficient repurposing of part of the offshore platforms as well as 149 km of onshore and offshore pipelines, and the construction of 35 km of new pipelines to connect industrial emitters to the Liverpool Bay CCS network.
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