Viking CCS project
On June 11, 2025, the UK government announced funding for two major CCS projects: the Acorn project in Northeast Scotland and the Viking project near the Humber region, previously referred to as V Net Zero. Both are seen as significant steps toward securing final investment decisions (FIDs), and the government’s move also includes support for ongoing CCS initiatives in Teesside and Merseyside.
The Viking CCS project aims to transport and store up to 10 million tonnes of CO₂ annually by 2030 and increase that figure to 15 million tonnes by 2035. The Acorn project, a collaboration between Storegga, Shell UK, Harbour Energy, and North Sea Midstream Partners, is part of Scotland’s decarbonization infrastructure, facilitating the capture and permanent storage of emissions beneath the North Sea.
OEUK emphasized that together, Viking and Acorn have the potential to attract £25 billion (approximately $33.96 billion) in investments by 2035, supporting over 30,000 jobs during peak construction. OEUK CEO David Whitehouse stated: “The Chancellor was right to say that energy security is national security and also to recognise the need to reduce reliance on overseas oil and gas. Domestic production is the path to energy security and economic growth. The support for the next phase of carbon storage projects in Scotland and Humberside is welcome, and an important step towards final investment decisions later in this parliament.”
As part of the UK’s Comprehensive Spending Review, the government outlined allocations including £9.4 billion ($12.8 billion) to CCUS through 2029-30, aiming to stimulate private investment and create supply chain employment. Additionally, £80 million ($108.8 million) is allocated for floating offshore wind port development at Port Talbot, pending due diligence, and £2.6 billion ($3.54 billion) is earmarked for decarbonizing transport, including £1.4 billion ($1.9 billion) for electric vehicle support from 2026-27 to 2029-30.
OEUK noted that Britain’s domestic oil and gas supply chain already possesses around 80% of the resources needed to deliver CCS projects. It considers CCS essential for reducing emissions from high-energy industries such as power generation, cement, and refining. OEUK believes carbon storage could add £100 billion (approximately $136.2 billion) to the UK supply chain by 2050, supporting more than 100,000 jobs.
While the UK government reaffirmed its £300 million ($407.9 million) support for offshore wind supply chains through GB Energy, full details of the upcoming renewable energy auction (AR7) are still pending.
Whitehouse concluded: “These projects will provide the pathway to support the decarbonisation of UK industries and are critical to the government’s clean power objectives. Homegrown energy production which will protect security and jobs must be at the heart of our industrial strategy.”
