Inside HyNet, the UK’s Test Case for Affordable CCS

HyNet’s shared CCS network shows how coordinated infrastructure and policy support could unlock lower-cost industrial decarbonization by 2029

6 Feb 2026

In the UK’s industrial northwest, carbon capture is moving from theory to steel, concrete, and pipework.

The HyNet North West cluster has entered detailed construction planning after securing government contracts, a milestone that signals how industrial decarbonization may actually happen at scale. For years, carbon capture and storage was treated as a costly add-on. HyNet suggests it could become shared infrastructure, closer to a utility than a bespoke fix.

The project links heavy industry across northwest England and north Wales to a common network that captures carbon dioxide and stores it beneath the Irish Sea. Construction is expected to start later this decade, with first operations targeted around 2029. For sectors such as cement and waste-to-energy, where emissions are hard to eliminate, HyNet offers a way to cut carbon without closing plants or relocating production.

What sets HyNet apart is coordination. Instead of each site building its own capture, transport, and storage system, the cluster spreads costs across multiple users. Pipelines and offshore storage are shared, reducing financial risk and improving project economics. Carbon capture shifts from a one-off capital burden to a service industries can plug into.

Eni, which leads the transport and storage element, plans to reuse existing offshore infrastructure. That choice shortens timelines and keeps costs in check, while showing how oil and gas assets can support the energy transition rather than be scrapped.

Industrial interest is building. Heidelberg Materials plans to connect its cement operations, targeting emissions that efficiency alone cannot remove. Encyclis is advancing capture at waste-to-energy sites, tackling emissions from residual waste treatment. Together, they highlight how CCS is becoming a practical option where alternatives are scarce.

Policy support is doing much of the heavy lifting. UK carbon capture contracts for difference provide long-term revenue certainty, reducing investment risk. Analysts argue this framework matters as much as the technology.

Permitting hurdles and volume commitments still pose challenges. Even so, HyNet is increasingly seen as a blueprint. If it works, it could protect jobs, cut emissions, and show that industrial competitiveness and climate action can move forward together.