Assessment of the CCUS Supply Chain in Scotland

The report aims to provide an in-depth analysis of the Carbon Capture, Utilisation, and Storage (CCUS) supply chain in Scotland. It explores the critical role of CCUS in supporting Scotland's transition to a net-zero economy by 2045, aligning with the UK's broader goal of achieving net-zero emissions by 2050. The report identifies key opportunities, challenges, and strategic recommendations to optimise Scotland's involvement in the emerging global CCUS market.

The analysis presented in the report is based on a combination of desk research, stakeholder engagement, and industry consultation carried out in late 2024 and early 2025. The industry consultation consisted of the following:

• Online Survey: the survey was targeted at potential suppliers form across various sectors relevant to CCUS. The survey aimed to capture detailed information on company profiles, current involvement in CCUS, interest in future engagement, and perceived barriers to entry or expansion in the CCUS market. 65 completed surveys were received.
• Detailed Interviews: These interviews were conducted via telephone and online meetings, allowing for deeper insights and discussions about the specific needs, challenges, and opportunities companies face regarding the emerging CCUS sector and its supply chains. The selection of companies for interviews was based on their potential impact on the CCUS supply chain, their innovative approaches, or their strategic importance to the sector. 16 detailed interviews were carried out.

The report highlights several key findings:

• Opportunity: The emerging CCUS industry in Scotland represents a diversification opportunity for existing suppliers within other, more established industrial sectors.
• Scottish CCUS Capabilities: Scotland has strong capabilities in key areas of the CCUS supply chain, namely in control and instrumentation, pumps and valves, subsea engineering and operations and maintenance, as well as in professional services to support CCUS developments.
• Scotland’s Competitiveness: While Scotland has strong capabilities, it faces stiff competition from countries with more advanced CCUS research and development initiatives and better integration of academic, industrial, and governmental efforts. Also, current policies and regulations lack the clarity required for companies to commit fully to CCUS, leading to hesitation and potential delays in project deployment. 

To capitalise on the opportunities and mitigate the challenges, the report proposes several strategic recommendations:

1. Government Policies: Advocate for more robust government policies that provide clear, consistent support for CCUS initiatives, including simplifying the regulatory framework and enhancing financial incentives.
2. Integration with Other Technologies: Encourage the integration of CCUS projects with adjacent energy transition technologies like hydrogen production and offshore wind.
3. Funding and R&D Support: Increase funding and support for CCUS-specific research and development initiatives to address technological gaps.
4. International Engagement: Encourage Scottish companies to engage in international CCUS projects and export their technologies and expertise.
5. Knowledge Sharing: Develop platforms for knowledge sharing and collaboration among CCUS stakeholders, including industry roundtables, workshops, and joint ventures.
6. Training and Education: Develop targeted training and educational programs to build a skilled workforce prepared to meet the demands of the emerging CCUS market.

These recommendations aim to support Scottish businesses in accessing and excelling in the emerging CCUS market, fostering innovation and economic growth.