UK’s first net-zero cement plant using CCUS moves closer

The Mineral Products Association (MPA) – which represents the UK’s concrete, cement and lime producers – has welcomed the Government’s pledge to fund the launch of the UK's first sites for carbon capture, utilisation and storage (CCUS).

On 4 October 2024, the Government confirmed that it will providing funding to launch the UK's first carbon capture sites. This will bring thousands of new skilled jobs, billions in private investment and help to accelerate the journey to net zero.

Among the projects hoping to receive funding is Heidelberg Materials’ Padeswood cement works, in Flintshire, part of the HyNet North West cluster of industrial sites poised to implement CCUS.

The UK concrete and cement industry is making huge strides in decarbonisation, especially through production efficiency, fuel switching, and the use of substitute materials. But the chemical reaction that takes place to produce cement clinker releases carbon dioxide, so CCUS is crucial for the industry to realise its net zero target.

The MPA says the Government’s commitment to CCUS is also a boost for the UK economy as it will help to prevent ‘decarbonization by deindustrialisation’, reducing the pressure to import cement from overseas and protecting thousands of UK jobs – from engineers and factory workers to sales teams and drivers, as well as countless businesses that supply the UK cement industry.

Dr Diana Casey, the MPA’s executive director for energy and climate change, said: “It is very positive to see the Government’s commitment to two carbon capture clusters and this news provides an important signal of intent to businesses and the investor community.

“While we await the specific detail of the package of support, the support announced for the HyNet cluster creates an opportunity to bring forward the UK’s first cement carbon capture plant.

“The independent Climate Change Committee has been clear that CCUS technology is essential to decarbonize UK cement production. There is now a need to see longer-term visibility of funding from the Government for CCUS technology which will help essential UK cement manufacturing to deliver its transition to net zero.

“The UK concrete and cement industry stands ready to support net zero by 2050. We will build on the extensive early action that we’ve taken which has seen the sector deliver a 53% reduction in absolute carbon dioxide emissions since 1990.”

In a recent document submitted to Chancellor of the Exchequer Rachel Reeves ahead of the Autumn Budget 2024 later this month, the MPA called on the Government to back the UK minerals industry to deliver green growth and clean energy.  

These MPA recommendations include:

• Provide clarity for industrial sites outside the track 1 and 2 CCUS clusters of future support, in particular the Peak Cluster and dispersed sites.
• Bring forward the UK Carbon Border Adjustment Mechanism (CBAM) to 2026 or protect from carbon leakage through free allowances in UK ETS.
• Extend compensation for indirect emissions costs to cement and lime in line with other energy-intensive industries.
• Abolish the Carbon Price Support (CPS) mechanism.