Over 600 professionals in the hydrogen and carbon capture industry meet every year in Leeds to share their experiences from the past 12 months, see what technological developments are underway and learn how they can best position themselves within the sector for long-term success.
This year, our Head of Energy Grahame Woods was invited to speak at the event, where he shared his thoughts on what a Trump presidency means for the UK’s energy sector, as well as how companies can best position themselves with the Labour Government to build enduring relationships and partnerships.
While the overall atmosphere was more positive than last year, Grahame noted that the focus had shifted away from hydrogen and firmly towards Carbon Capture Utilisation and Storage (CCUS), with three major challenges dominating the discussions:
The House of Commons Public Accounts Committee’s CCUS report
The first major topic was the publication of the House of Commons Public Accounts Committee’s report on CCUS, which was released just days before the conference.
The report was striking in its assessment of the government’s approach, describing it as a “high-risk” strategy that has already fallen behind schedule.
While Department for Energy Security and Net Zero has secured nearly £22 billion over 25 years to support initial CCUS projects, but concerns remain over whether this funding structure provides value for money.
Most critically, the government has quietly abandoned its target of capturing 20 to 30 million tonnes of CO2 annual by 2030 without setting a revised goal. The report also warns that this lack of clear ambition could jeopardise the UK’s ability to meet legally binding carbon reduction targets.
Reaching Final Investment Decision (FID) stage
The second issue that was discussed throughout the summit was the struggle that many projects are facing to get to Final Investment Decision (FID) stage.
While there has been significant government funding allocated over the coming years, accessing this support remains an ongoing challenge.
Delays in contract negotiations and a lack of clear commercial frameworks are creating uncertainty and discouraging further private investment.
This bottleneck is further challenged by concerns over long-term regulatory frameworks and cost allocation between the private sector and consumers.
Government and Industry Engagement
Finally, and perhaps more importantly, there was a strong sense of frustration about the lack of engagement between government ministers and industry leaders.
Despite over 600 sector leaders being at the conference, not a single government minister of MP attended. Something particularly notable given the significant role CCUS is expected to play in achieving the UK’s net zero commitments.
While the government has made a headline commitment of £20 billion over 25 years, businesses are struggling more than ever to engage with parliamentarians and secure meaningful policy support.
The absence of MPs and ministers reinforced concerns that, despite the rhetoric, CCUS is not yet a true political priority.
What next?
While the conference had a positive atmosphere, these three overarching issues must be addressed if the sector is to move forward successfully.
The government need to create credible carbon capture targets and provide clarity on future funding mechanisms.
At the same time, streamlining the FID process and increasing direct engagement between policymakers and industry leaders will be essential in unlocking the full potential of CCUS in the UK.
With these changes, the sector risks stagnation just as global competition for carbon capture investment heats up.