The government has heralded a 'new era' for clean energy as Labour commits to positioning the UK at the forefront of carbon capture technology deployment, with potentially significant implications for the logistics, transport, and supply chain industry.

Major investment in regional development

In a landmark move, the government has finalised a commercial agreement with industry partners, pledging up to £21.7 billion in funding over 25 years for two pioneering carbon capture sites in Teesside and Merseyside.

This substantial investment is projected to generate 4,000 immediate jobs in the North West and North East of England, with the potential to support an additional 50,000 positions over the long term.

Understanding CCUS technology

Carbon Capture, Utilisation and Storage (CCUS) technology removes CO2 before it enters the atmosphere and stores it beneath the seabed.

Prime Minister Keir Starmer emphasised the significance of this initiative and said: “We’re reigniting our industrial heartlands by investing in the industry of the future.”

Impact on the sector

Infrastructure development

The implementation of CCUS technology encompasses multiple stages - capture, transportation, and storage - necessitating substantial infrastructure development across various industrial sectors.

The government's investment includes:

• Critical infrastructure for CO2 transportation and storage
• Installation of specialised equipment:
  • Boilers
  • Auxiliary equipment
  • Cooling towers
  • Digital monitoring systems

Transportation implications

The logistics sector faces both challenges and opportunities in CO2 transportation. According to the Global CCS Institute, various modes of transport can be utilised:

1. Pipeline networks (primary method)
2. Specialised road haulage
3. Rail freight services
4. Maritime shipping

These developments will require:

• Engineering consultancy services
• Specialised pipeline providers
• Logistics companies capable of handling compressed CO2
• Heavy lifting equipment
• Enhanced safety protocols and equipment

Storage solutions

The final phase involves storing CO2 in geological formations, such as depleted oil and gas fields, or utilising it in enhanced oil recovery processes. This creates demands for:

• Specialist technologies:
  • Industrial turbines
  • Advanced insulation systems
  • Water treatment facilities
• Professional services:
  • Project management expertise
  • Operational support
  • Maintenance services

Industry outlook

As the UK positions itself to become a global leader in CCUS and hydrogen technologies, the logistics and transport sector stands to benefit from:

1. Increased demand for specialised transportation services
2. Development of new infrastructure projects
3. Creation of skilled job opportunities
4. Potential for innovative supply chain solutions