Displaying items by tag: HyNet North West

Heidelberg Materials announced this week that it had received the funding clearance to build a carbon capture and storage (CCS) unit at its Padeswood cement plant in Cymru (also known as Wales). Construction on the project will start later in 2025 with net zero cement production expected in 2029. The upgrade will be the group’s first full-scale carbon capture facility. It will capture around 0.8Mt/yr of CO₂ at the site or around 95% of the CO₂ emissions from the process. As the captured emissions will also include biogenic CO₂ from biomass fuels - including domestic food, wood and paper wastes - cement produced at the plant could potentially be net negative.

Just like Heidelberg Material’s first large-scale CCS project at the Brevik cement plant in Norway, the work at Padeswood is part of a larger government-backed decarbonisation cluster. In this case it’s the HyNet North West project. Captured CO₂ from Padeswood will be transported via an underground pipeline for storage under the seabed in Liverpool Bay. The wider cluster will also produce, transport and store hydrogen. A waste-to-energy company Encyclis also announced this week that it had also agreed terms with the government for its Protos CCS project.

It is worth noting the differences between Heidelberg Material’s first two large-scale CCS projects. Padeswood, like Brevik, will use an amine-based carbon capture system but the technology is likely to be provided by a different supplier. Mitsubishi Heavy Industries (MHI) and Worley were awarded the contract for the Front End Engineering Design (FEED) phase of the project in 2024 with the intention of using MHI’s Advanced KM CDR Process. The funding model is also different for Padeswood. In Norway the original estimate was that over three-quarters of the carbon capture unit would be paid for using state aid and over two-thirds of the funding for the transport and storage of CO₂ would come from the government. Large sums of government grant funding could be seen entering Heidelberg Materials’ balance sheet in 2024 for example. By contrast, Heidelberg Materials says it has agreed a ‘contract for difference’ (CFD) with the UK government. Under the terms of this contract the cement company will provide the upfront investment to build the project and will also be responsible for any additional costs over the agreed contract price. The CFD will likely track the carbon price in the UK Emissions Trading Scheme (ETS).

The wider picture is that the UK government allocated just under €25bn in late 2024 towards two decarbonisation clusters with the funding to be made available over 25 years. However, the completion date for the Padeswood CCS of 2029 is, coincidentally, the latest year by which the next UK parliamentary election could be held. The incumbent Labour party is currently behind in the polls to the populist Reform UK party. The deputy leader of the latter said that his party would cut all "net stupid zero" policies if they entered government. It is likely that the arrangement between Heidelberg Materials and the UK government is legally binding for decades to come with provision for all sorts of eventualities. Yet readers may recall the decision by the second Trump administration in the US to cancel funding for various carbon capture projects including at least one cement project. There is also opposition from various groups in the UK to carbon capture generally and from some groups to HyNet specifically. HyNot, for example, applied for a judicial review in August 2025 challenging the government’s decision to allow Italy-based Eni to store carbon dioxide in Liverpool Bay.

Another issue is that UK cement production dropped to 7.3Mt in 2024, the lowest level since 1950. The impending carbon border adjustment mechanism (CBAM), due in 2027, should help local producers fight off imports but if the market stays down then the production base may need to be rationalised. A cement plant with a new CCS unit linked to the government’s flagship decarbonisation cluster doesn’t seem an obvious choice for closure anytime soon though.

From here it’s all about building new carbon capture projects at different cement plants in different locations with different technologies and so on to determine what works and what doesn’t. A major part of this phase is deciding what kind of government involvement fits and trying it out over the coming years. To end, a CCS project in the north of the UK is poignant given that the Industrial Revolution started here in the late 18th Century. ‘Pob lwc’ (good luck) to all concerned!

UK: Heidelberg Materials has reached a Final Investment Decision (FID) with the UK Government for its carbon capture and storage (CCS) project at the Padeswood cement works in north Wales, clearing the way for construction to begin later in 2025.

Energy Minister Michael Shanks announced the decision today, which will enable Heidelberg Materials to produce net-zero cement by 2029. The project will capture around 0.8Mt/yr of CO₂, approximately 95% of emissions from the cement works, and transport them via pipeline for storage under Liverpool Bay as part of the HyNet North West project.

Simon Willis, CEO of Heidelberg Materials UK, said “Our constructive partnership with the UK Government has allowed us to reach this major milestone, which is fantastic news, not just for us, but for the industry as a whole. Our new facility at Padeswood will be a world-leader. It will allow us to produce evoZero carbon captured net zero cement, which will help the UK construction industry reach its decarbonisation aims.”

The project is expected to create 50 new jobs, and generate up to 500 more during construction. It is the UK’s first full-scale CCS project for cement and follows Heidelberg Materials’ recent success in Norway, where it launched the world’s first carbon capture facility at its Brevik cement plant in June 2025. Here, 50% of the plant’s emissions are being captured as part of the Norwegian government’s Longship programme.

The UK-based Mineral Products Association (MPA) has celebrated this step, with Dr Diana Casey, Executive Director for Energy and Climate Change, Cement and Lime, saying “The green light for the UK’s first carbon capture-enabled cement plant at Padeswood is a landmark step on the road to decarbonising our domestic cement industry – it will safeguard existing skilled jobs and create new opportunities too. Public investment in this project provides a strong vote of confidence in the technology and recognises the vital role cement plays in supporting economic growth while delivering on the transition to net zero. Decarbonising heavy industry is not only essential for meeting climate goals, but also for securing the future of communities across the country – today’s announcement delivers on both.”

UK: Heidelberg Materials UK has secured planning permission to build a carbon capture plant at its Padeswood cement works in north Wales. The facility will capture up to 800,000t/yr of CO₂ for storage via the HyNet North West pipeline under Liverpool Bay.

The project is expected to create around 50 new full-time jobs, and up to 500 additional jobs during construction. Once operational, the Padeswood facility will capture ‘almost all’ of the CO₂ produced at the cement works and enable the production of evoZero cement by 2029.

UK: The Mineral Products Association (MPA) has endorsed the UK government's commitment to finance the country’s first carbon capture, utilisation and storage (CCUS) sites, which could help make the creation of the nation's first net zero cement plant a reality. One of the projects hoping to receive funding is Heidelberg Materials’ Padeswood Cement Works in Flintshire, part of the HyNet North West cluster of industrial sites poised to implement CCUS. The government's support for CCUS not only progresses the decarbonisation efforts of the UK concrete, cement, and lime sectors, but also reduces the pressure to import cement from overseas, protecting the UK economy by sustaining local industry and jobs.

MPA executive director for energy and climate change Diana Casey, said “It is very positive to see the Government’s commitment to two carbon capture clusters and this news provides an important signal of intent to businesses and the investor community. While we await the specific detail of the package of support, the support announced for the HyNet cluster creates an opportunity to bring forward the UK’s first cement carbon capture plant.”

UK: The government has announced a €26.3bn investment to develop carbon capture and storage (CCS) projects in northern England. The investment will subsidise three projects to capture CO₂ from various sources, including Heidelberg Materials’ Padeswood cement plant, and support infrastructure for transporting and storing CO₂ in Liverpool Bay and the North Sea. The initiative also plans to establish the UK's first large-scale hydrogen production plant. The funding, promised over the next 25 years, aims to establish two carbon capture clusters in Merseyside and Teesside. The investment is expected to create ‘thousands’ of jobs, attract €9.5bn in private investment and advance the UK's climate objectives.

Heidelberg Materials UK CEO Simon Willis said “Today’s announcement from the government to drive ahead with investment in CCS clusters is a major milestone in the decarbonisation of UK industry and sets the construction sector on the path to net zero. As part of the HyNet North West decarbonisation cluster, we are bringing forward our plans for the CCS plant at a UK cement works at Padeswood in North Wales. The government’s backing of this critical technology means that the production of zero carbon cement before the end of this decade has taken a big step forward.”

UK: Heidelberg Materials has announced the launch of a public consultation for its carbon capture and storage (CCS) project at Padeswood Cement Works. The consultation, which runs from 2 July - 12 August 2024, will gather public input on the proposed plans to install the CCS technology, which will capture up to 800,000t/yr of CO₂, according to local news reports.

The Padeswood CCS project is expected to create over 400 jobs and forms part of the HyNet North West initiative, a major industrial decarbonisation effort that includes constructing a 60km pipeline to transport CO₂ to depleted gas reservoirs in Liverpool Bay for storage.

UK: Hanson UK says that its planned installation of a carbon capture system at its Padeswood cement plant in Flintshire has proceeded to the due diligence and negotiations stage. The project aims to achieve net zero CO₂ cement production by capturing 800,000t/yr of CO₂. It is part of the HyNet North West array of projects, which combines green hydrogen and carbon capture to build a first-of-its-kind industrial decarbonisation cluster.

Hanson UK CEO Simon Willis said “I would like to thank the government and all of those that supported us in our bid to receive funding which will enable us to help decarbonise the construction industry and meet our overall ambition to become a net zero business. This global exemplar project will provide net zero construction materials for major projects across the country, from new offshore wind farms and nuclear power stations to clean transport infrastructure.”

UK: HeidelbergCement subsidiary Hanson’s plan for the installation of a carbon capture system at its Padeswood cement plant has proceeded to the due diligence stage for funding from the UK government’s Department for Business, Energy and Industrial Strategy. The project is one of 20 from the East Coast Cluster and HyNet North West Consortium to make the shortlist for this phase of the approval process.

If successful, Hanson will be able to capture 800,000t/yr of CO₂ and produce carbon neutral cement at the Padeswood plant by 2027. It will create 54 new skilled full-time jobs.

UK: The government has awarded funding to the planned HyNet North West low-CO₂ industrial cluster. The cluster will reduce industrial CO₂ emissions by 10Mt/yr in North Wales and North West England. It includes a planned 800,000t/yr carbon capture installation at Hanson UK’s Padeswood cement plant in Flintshire. The producer is currently carrying out a feasibility study at the plant. Parent company HeidelbergCement said that the project will play a ‘critical role’ in the UK’s transition to net zero CO₂ emissions by 2050.

Chair Dominik von Achten called the decision “A well-deserved recognition for the HyNet consortium and our colleagues working on carbon capture and storage (CCS) in the UK as part of this collaborative project. Cutting CO₂ emissions is a key priority for us, and we are delighted to add our Padeswood cement works to our growing range of CCS activities, as a key part of our pathway to reaching net zero.”

UK: Germany-based HeidelbergCement subsidiary Hanson has received the green light for its planned carbon capture and storage (CCS) study at its Padeswood cement plant in Flintshire after its partner, the HyNet North West consortium received Euro84m in funding. The study will support a design basis and cost estimate for a carbon capture unit at the cement plant and a connection to the planned HyNet North West CO₂ transport and storage system. Euro46m of the funding came from consortium partners while Euro38m came from a UK Research and Innovation (UKRI) Industrial Decarbonisation Challenge grant.

Hanson chief executive officer Simon Willis said, “Today’s funding announcement is fantastic news for everyone involved in HyNet North West. Cutting CO₂ emissions is a key priority for us, and we are excited to be one of the first UK cement producers working on carbon capture and storage (CCS) as part of this collaborative project.” He added, “We’ve taken big steps towards reducing carbon emissions and have set ourselves an ambitious target of achieving a 50% reduction in CO₂ emissions by 2030, based on 1990 levels, and net zero carbon concrete by 2050. CCS at cement plants is a key part of our roadmap to net zero.”