UK government allocates £9.4 billion to CCUS in spending review

Chancellor Rachel Reeves yesterday announced £9.4 billion to Carbon Capture, Usage and Storage (CCUS) in the June 2025 spending review.
UK government allocates £9.4 billion to CCUS in spending review
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Chancellor Rachel Reeves yesterday announced £9.4 billion to Carbon Capture, Usage and Storage (CCUS) in the June 2025 spending review.

The review states that government support for CCUS "will attract private investment and support thousands of jobs across the supply chain". 

The allocation will focus on maximising deployment to fill the storage capacity of the East Coast Cluster and HyNet Cluster. The government announced its support for the Acorn and Viking clusters and providing the development funding to advance their delivery. A final investment decision will be taken later this Parliament, subject to project readiness and affordability.

Responding to the announcement, Mike Maudsley, CEO of enfinium, said:

"enfinium welcomes the UK Government's announcement of increased funding for carbon capture, alongside further backing for Wales in its efforts to transition to net zero. Leveraging this support, our Parc Adfer energy from waste facility in North Wales could play a critical role in removing up to 120,000 tonnes of carbon a year from the atmosphere, support green jobs and advance Wales ambition to be a circular economy leader."

Also included in the review was support for the production of Sustainable Aviation Fuel in the UK by extending the Advanced Fuels Fund through the SR period, allocating £616 million for Active Travel England from 2026-27 to 2029-30 to support local authorities (LAs) to build and maintain walking and cycling infrastructure, and funding research into transport decarbonisation to unlock innovation and support technologies of the future.

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