Call for investment in CO2 shipping infrastructure in south Wales

New report makes a strong economic case for UK Gov investment

In December 2023 we released a study demonstrating a strong economic case for UK Government investment into CO₂ shipping infrastructure in south Wales.

The report — which we developed in conjunction with several of our member organisations, incl. RWE, Dragon LNG, Associated British Ports and 7CO2 — highlights the economic benefits of such an investment in the form of safeguarded Gross Value Added and job creation. 

Approximately £2.4bn is needed in public funding to support £8.6bn of investments from industry — with the total £11bn investment set to deliver £19bn of benefits over a 20-year period.

Delivering an average reduction of 8 million tonnes of CO₂ per annum (equivalent of 50% of south Wales’ industrial carbon footprint) — the investment will protect industries and provide a springboard for further industrial decarbonisation across Wales. 

The case forecasts that an additional 10,000 jobs will be created during the construction phase of the projects, with 600 permanent new jobs available once the projects are operational.

Deferring investment in CO₂ shipping infrastructure would have very real consequences in terms of risking further de-industrialisation and further closures of plants, resulting in a loss of well-paid jobs in the area. Therefore, in the short term, the report calls on the UK Government to allow non pipeline transport solutions (i.e. shipping) to bid in Track 2 of the cluster sequencing program. 

Carbon capture and storage (CCUS) technology will play an important role in decarbonising heavy industry in south Wales — with investment into the infrastructure allowing captured CO2 to be shipped to stores in places like Scotland and Humber. 

Our CEO, Ben Burggraaf, said: “CO₂ shipping is the switch we need to drive emissions reduction and boost economic growth across the south Wales region. 

“Our report demonstrates a strong case for public investment into the infrastructure needed — and we hope we can count on the UK Government’s support to incorporate CO2 shipping into the ‘Track 2 process.’ This will enable us to kick-start the transformational change of our industrial landscape in Wales for the benefit of present and future generations, alike.” 

The full report can be downloaded via the link below.