Martin McCluskey, Minister for Local Energy and Jobs, has reaffirmed the Government’s commitment and the key role of CCUS in the UK’s energy transition.

Speaking at the Carbon Capture and Storage Association (CCSA) 2026 Annual Conference he noted that “carbon capture is not an end in itself, they matter because of what they allow us to do, and the industries they enable.”

Central to the Government’s vision is the so-called ‘reindustrialisation’ of areas, a somewhat vague idea that McCluskey attempted to nail down by saying it would allow: “Young people grow up in communities that they love. Their families and friends are there. Their roots are there.”

CCUS could be an enabler of regional renewal through industry. A ‘pump prime’ that has significant Government funding in the expectation that it will create hubs of modern, clean, industry.

McCluskey used the example of Padeswood, a carbon capture facility attached to cement works. Indeed, the UK’s first carbon capture-enabled cement plant.

The Government has committed up to £21.7bn over 25 years to support CCUS projects, but as admitted there is a somewhat challenging fiscal environment.

And so, to the sting in the tail: McCluskey stated: “So I owe you today to level with you, the next phase of the CCUS programme will be in the context of broader difficult decisions on funding. We must ensure that public investment is targeted where it can deliver the greatest value, while continuing to build confidence in the long-term future of the sector. That may mean making decisions about priorities, sequencing and pace, and recognising that progress will not always happen everywhere at once.”

What this actually means is, of course, not clear, but McCluskey admitted that, “as the CCUS sector grows, the requirement for Government subsidy will need to reduce if it is to be sustainable for the long-term”.

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