NEWS & INSIGHTS | Opinion
Unlocking the value of captured carbon dioxide: Shifting from storage to utilisation
Hayleigh Barnett
Hayleigh Barnett is the Technology Principal for Hydrogen, Alternative Fuels, and CCUS at the Net Zero Technology Centre. In this role, she delivers on and oversees the strategic direction and delivery of key initiatives across these focus areas. Her work spans the development of innovative projects such as the Hydrogen Backbone Link, the Energy Hubs project and Phase 2 of the Hydrogen Offshore Production project.
With over 12 years of experience in engineering and business development, Hayleigh brings a strong blend of technical expertise and commercial insight. She has successfully delivered a wide range of projects—from early-stage technology concepts to detailed engineering projects— and has also supported the development of early technology readiness level concepts. With her clear communication and collaborative approach, Hayleigh is passionate about driving forward sustainable energy solutions.
The future of decarbonisation lies not just in how well we capture carbon – but in what we choose to do with it. For years, carbon dioxide has been cast as the problem: something to trap and store, out of sight, out of mind. What if, instead, we viewed captured CO₂ as an untapped asset? Across the UK and beyond, a quiet revolution is underway, turning carbon from burden to building block for a whole new class of sustainable fuels and products.
Turning captured CO₂ into a net zero asset
As we pivot to net zero, we must seize every low–carbon advantage. Captured CO₂, especially from biogenic sources, is no longer simply a waste product – it is a vital resource with huge potential for the UK’s clean energy ambitions.
When combined with green hydrogen, this carbon can be converted into valuable synthetic fuels such as e–methanol, e–kerosene and ammonia, powering ships and planes or supporting heavy industry. These fuels offer drop–in compatibility with today’s infrastructure, giving us a realistic route to decarbonise sectors that are notoriously hard to electrify.
Here on home soil, the UK holds a critical advantage. We have the proven technologies, skilled workforce and supply chain strength to seize the synthetic fuel opportunity. But costs of critical feedstocks, such as green hydrogen produced from renewable energy, are not falling fast enough. Despite promising advances, policy challenges remain.
Why does policy still reward storage over utilisation?
Most flagship UK projects are focusing primarily on geological storage, often treating utilisation as an afterthought – despite the urgent demand for e–fuel feedstocks and other low–carbon products. Globally, among active and potential projects, there’s an even split between those committing captured CO₂ to storage versus utilisation. However, a significant number remain undecided on which path to take.
It comes down to incentives. Current policy frameworks and market mechanisms continue to favour locking CO₂ away rather than unlocking its value through products and clean fuels. For example, the EU’s carbon storage legislation announced this year requires energy producers to have clear plans for permanent storage, creating market certainty and compliance value specifically for storage.
Economic incentives reinforce the focus on storage: the UK has committed £21.7 billion over 25 years to support large-scale CCS clusters aimed at permanent offshore carbon storage. Storage has a powerful appeal because it delivers a straightforward emissions reduction, helping government and businesses build towards statutory climate targets.
Alongside the capture and storage of fossil-based CO2 emissions, only two million tonnes of biogenic CO₂ is captured worldwide each year. This is despite estimates placing the global sustainable supply well above 320 million tonnes. Storage plays a crucial role, but a balanced approach is needed to help power the alternative fuels opportunity.
This is not just a missed opportunity for emissions reduction. It is also a major barrier to innovation, investment and the growth of a domestic alternative fuels industry. Without stronger incentives for utilisation, the synthetic fuels market risks staying stuck at pilot scale just as demand in UK aviation and maritime surges. According to NZTC’s own research, detailed in our latest report, synthetic fuel demand in these sectors alone could exceed six million tonnes annually.
The required policy support for CO₂ utilisation
If we are to unlock the economic and environmental benefits of carbon utilisation, there needs to be a decisive policy shift.
- Policy reform: Bolster and increase support schemes, like the Renewable Transport Fuel Obligation (RTFO) and the Sustainable Aviation Fuel (SAF) mandate, so that both storage and utilisation projects are treated equally. This will give CO₂–to–fuel systems and value-added carbon products a level playing field.
- Investor confidence: Clear long–term signals and aligned regulatory frameworks are needed so finance can flow into larger–scale commercialisation and industrial clusters.
- Collaboration: Champion partnerships between emitters, fuel producers, infrastructure owners and technology innovators. Integrated supply chains and sharing of infrastructure will de–risk initial investments and help scale up quickly.
- Local leadership: Regional areas like Teesside, Grangemouth and Shetland demonstrate just how closely jobs, skills and regional prosperity are linked to this opportunity. By making the most of captured carbon, these communities are steering the transition from fossil–dependent industry towards future–proof, high–value clean energy hubs.
Beyond emissions reduction: The economic prize
Treating carbon as a commodity is not just climate common sense but a sound economic strategy. Utilising CO₂ in alternative fuels can spark new value chains, provide high–skilled employment and reinforce the UK’s position as a global exporter of clean fuels and technologies. Innovation at industrial sites, equipped with carbon capture, hydrogen production and e–fuels capacity, can create thriving networks of suppliers and service providers, from engineering and digital to logistics and training.
By integrating carbon utilisation with existing oil and gas assets, we dramatically reduce the costs, build times and risks of developing brand new infrastructure, while extending the lifespan and economic value of strategically important energy sites.
Shifting from a storage–first mentality to a balanced approach that incentivises both storage and utilisation could help the UK unlock extraordinary opportunities in alternative fuels – boosting homegrown fuel security, accelerating net zero progress and banking a huge dividend for jobs and industry. Captured CO₂, paired with hydrogen, is the cornerstone of next-generation fuels that will power aviation, maritime and heavy industry.
But this opportunity hinges on utilisation – a deliberate choice to transform carbon from a byproduct we bury into a resource we truly put to use. If swift action is taken, the UK can lead the way in turning what we emit into what we use, creating a cleaner, more prosperous future.
Our latest report provides an in-depth look at the alternative fuels opportunity, sector forecasts and practical steps for industry and policymakers.
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