CO₂ Shipping: Don’t Miss the Boat

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  • CCS is central to the UK’s decarbonisation plan, but shipping must complement pipelines to expand access, lower costs, and create jobs.
  • Cross-border CO₂ shipping offers a pan-European solution, enabling the UK to leverage its vast storage potential and strengthen competitiveness.
  • Ports, infrastructure, and regulatory alignment will be critical to scaling CCS shipping and meeting rising demand by 2050.

The UK has committed significant funding—£22 billion for Track 1 clusters and development support for Track 2—to establish CCS as a transformative industry. While pipelines form the backbone of the strategy, shipping is emerging as a vital enabler. It allows regions without direct pipeline connections to access storage solutions, extending decarbonisation benefits across more businesses and communities. Additionally, CO₂ shipping supports cross-border trade, enabling the UK to export storage capacity and EU emitters to access cost-effective solutions,, according to Associated British Ports.

Economic Impact and Job Creation

By integrating shipping into CCS networks, economies of scale can be achieved, reducing costs for UK emitters and easing reliance on government subsidies. Building liquefaction plants, loading terminals, and specialised vessels would represent major capital investment, generating skilled employment and revitalising local economies. Ports such as Immingham, Hull, and Port Talbot are well-positioned to serve as hubs, strengthening the UK’s status as a global leader in CO₂ transport and storage.

A Pan-European Solution

Europe’s carbon management strategy targets 50 million tonnes annually by 2030, but many emitters lack suitable geological storage. The UK, with abundant offshore capacity, holds a strategic advantage. Reports suggest that a cross-border CO₂ market could cut storage costs by 20%, saving billions. However, regulatory alignment is crucial—particularly around ETS recognition and the London Protocol. Norway’s Northern Lights project already demonstrates that large-scale CO₂ shipping is feasible and commercially viable.

Building Resilient and Flexible Networks

While pipelines will remain essential, shipping enhances resilience, scalability, and flexibility. It connects isolated regions, aggregates smaller volumes at hubs, and provides fault tolerance within the network. Research confirms that these features make shipping a strong complement to pipelines.

Meeting Rising Demand

Global demand for CCS transport is projected to increase 100-fold by 2050. European platforms and institutes have called for urgent standardisation, investment, and regulatory clarity to prepare for this growth. Ports will be central to this transition, acting as multimodal connectors between emitters and storage, and anchoring the wider CCS value chain.

Urgent Need for Action

The UK has taken an early lead in CCS, but competition from other nations is intensifying. To capture long-term opportunities, urgent steps are needed: finalising business models for CO₂ shipping, aligning UK/EU ETS frameworks, and ratifying international protocols. With swift action, the UK can strengthen its leadership and ensure that CCS shipping delivers economic, environmental, and industrial benefits on a global scale.

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Source: Associated British Ports