A new agreement to develop a carbon capture and storage (CCS) hub at Avonmouth Docks has brought industry in southwest England, the Midlands and South Wales closer to accessing CO2 transport and storage infrastructure.
Severnside Carbon and energy logistics company Exolum have signed a deal to advance the project, with Exolum set to lead the next phase of development.
As part of the agreement, Exolum will establish a new subsidiary, Exolum 7CO2, to develop a large-scale CO2 storage terminal at the Port of Bristol.
Spanish engineering firm Técnicas Reunidas will also join the project as a partner. Currently, access to government-backed CCS infrastructure in the UK is limited to four industrial clusters in northern England and Scotland.
Around half of the country’s industrial emissions fall outside these regions, including South Wales, which accounts for approximately 5% of total UK emissions. Thus, the new terminal aims to expand access to carbon capture infrastructure for industries beyond the existing clusters.
Expanding Access to Carbon Capture Infrastructure
The facility is expected to become the UK’s first large-scale CO2 hub designed for flexible transport by rail and ship.
Operations could begin as early as 2031. Once operational, the terminal may handle up to 6 million metric tons of CO2 annually, equivalent to the total emissions of southwest England.
The hub is also expected to support emerging industries, including data centers and sustainable aviation fuel projects, by providing access to CCS solutions. By offering open-access CO2 transport and storage, the project aims to create a clearer pathway for energy-intensive industries to decarbonize.
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Exolum is expected to commit significant resources to the development, integrating the terminal with its existing UK infrastructure. Severnside Carbon will continue to support the project in an advisory role, while also advancing related initiatives, including carbon capture services and sustainable aviation fuel investments.
“This is a significant step forward, giving regional emitters and wider stakeholders confidence to invest in carbon capture and related industries,” said Paul Davies, co-founder of Severnside Carbon.
The development marks another step in the UK’s efforts to scale carbon capture infrastructure and support industrial decarbonization.
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