Carbon Capture Hits the UK

Hi everyone,

This week, I’m digging into a milestone moment for carbon removal in the UK: the planned arrival of Climeworks' first Direct Air Capture (DAC) plant on British soil. Called "Silver Birch," the project has just been shortlisted to join HyNet, one of the country’s leading carbon capture and storage networks. If built, it could mark the UK's entry into full-scale DAC, pulling carbon from the atmosphere and locking it away underground. But what does this mean for the UK’s climate targets, industrial strategy, and the communities near these new facilities? And is this the best use of time, energy, and money in the fight against climate change? Let’s take a closer look.

The Promise and the Pressure

The UK has set ambitious targets here: by 2030, it aims to store 20 to 30 million tonnes of carbon dioxide annually, with at least 5 million of that coming from engineered removals like DAC. For scale, that's roughly equivalent to the annual emissions of every car in Greater London. The catch is that DAC remains costly, at about $500 to $1,000 per tonne of CO₂ removed today. Climeworks hopes to halve that by the end of the decade, while the government is exploring new funding models and plans to integrate removals into the UK carbon market. The potential is a clear solution for hard-to-decarbonise sectors like aviation and cement. The risk is that it diverts money and focus from faster, cheaper solutions.

From Idea to Reality

At its core, DAC is a really sophisticated filter. Giant fans push air through materials that trap CO₂, which is then heated and stored underground. Climeworks is the sector’s most recognisable name, using modular "collector boxes" that can be deployed in clusters. In Iceland, it has launched Orca (removing 4,000 tonnes/year) and Mammoth ( removing 36,000 tonnes/year), both are powered by geothermal energy and store carbon in volcanic rock. Silver Birch would bring this concept to the UK, plugging into HyNet's storage system beneath Liverpool Bay. If successful, it would mark the UK's first full chain of air-to-rock carbon removal setup.

Why the UK, Why Now

This isn’t happening in isolation. The UK has been laying the groundwork for large-scale carbon capture for years. The plan is four industrial clusters by 2030, collectively storing 20 to 30 million tonnes of CO₂ annually and creating tens of thousands of jobs. HyNet is a cornerstone of this. It has recently secured funding to build its transport and storage network, including pipelines that feed into depleted gas fields under Liverpool Bay. It will start at 4.5 million tonnes/year, doubling after 2030. Silver Birch fits neatly into this infrastructure. The government has also pledged £21.7 billion to back the first wave of projects and introduced a business model that guarantees revenues for removals. Policy, funding, and infrastructure are aligning on this project.

Climeworks’ Playbook

What makes Climeworks distinctive is its modularity. Each collector box is about the size of a shipping container and can be added in arrays as projects scale. These systems rum at relatively low temperatures of around 100°C, which allows them to run on waste heat, heat pumps, or renewables. In Iceland, this has fueled rapid growth, and Climeworks now aims for million-tonne plants soon. The UK adds a key benefit: direct access to HyNet’s storage system, reducing risks tied to transport and permanence. With strong policy support, the setup looks promising. Still, real climate benefit depends on clean energy supplies, rigorous monitoring, and data that can be trusted.

Counting the Costs

The economics are still daunting. DAC currently costs five to ten times more than carbon prices in the UK market. Climeworks projects its next-gen systems could lower removal costs to $400–$600 per tonne by 2030. That’s real progress, but far from cheap. Energy demand is another hurdle. Capturing one tonne of CO₂ requires as much electricity as a UK household uses in two months, plus a significant amount of low-grade heat. That’s why co-locating with waste heat or renewables is crucial. Early support will need to come from government contracts and carbon markets. The debate is should limited public funds go here, or toward quicker wins like home insulation? The counterpoint is that DAC is essential for sectors where cuts are hardest. Balance is key.

People and Place

For Merseyside, this is more than a climate initiative; it’s an industrial renewal. HyNet is projected to create nearly 3,000 direct jobs and up to 6,000 across construction and supply chains. Local colleges are already adapting programs to prepare students for careers in carbon capture and hydrogen. But community concerns around traffic, noise, aesthetics, and who truly benefits need to be considered. Surveys show most people want carbon removal funded by polluters, not taxpayers. For a region shaped by shipyards and chemical plants, DAC could be the next chapter. But it needs local trust and shared benefits to endure.

What Success Could Look Like

Picture this. Containerised DAC units humming on low-carbon electricity and waste heat. Every tonne of CO₂ captured is piped to HyNet’s system, stored permanently beneath Liverpool Bay. Independent monitors verify the numbers. Revenues come from long-term contracts, and verified removals trade in the UK carbon market. New jobs and supply chains emerge, and the UK begins exporting its knowledge from this project. But for this vision to become a reality, the basics must be strong. Clean energy, credible monitoring, clear community value, and DAC as a complement (not a substitute) for rapid emissions cuts.

Cleaning the Past

Direct Air Capture highlights the industrial decisions Britain must make. A UK-based plant may soon draw in the emissions exhaust of our modern economy. DAC is no substitute for rapid emissions cuts, but it can help in the toughest areas to reduce emissions.

Capturing carbon is about managing what we’ve already emitted, and building a path forward.

Catch you next week,
James