Heidelberg Materials has taken final investment decision (FID) on its landmark CCS project at the Padeswood cement plant in the UK, setting a new global benchmark for net-zero industrial production. Backed by a funding agreement with the UK Government, the project will make Padeswood the first cement plant in the world to achieve fully decarbonised production.

Project overview

Construction is due to begin this year, with commissioning planned for 2029. Once operational, the CCS system will capture around 800,000 tonnes of CO₂ annually, effectively eliminating nearly all of the site’s emissions. Captured carbon will be transported for permanent storage under Liverpool Bay as part of the HyNet North West project.

The development builds directly on experience from Heidelberg’s pioneering Brevik CCS facility in Norway, which is now under construction and due online in 2025. Together, the two projects place Heidelberg Materials at the forefront of global industrial decarbonisation.

EPC and supply chain

EPCIntel.com indicates that the Padeswood CCS scope is expected to generate major contracts across:

• Capture unit and process plant (€400–500 million): Likely to attract major process contractors such as Technip Energies and Aker Carbon Capture, both of whom have CCS references in Europe.
• Compression and transport systems (€150–200 million): UK and European players like Worley, Fluor, and Petrofac are strong contenders for CO₂ compression and integration into HyNet’s pipeline system.
• Construction and civils (~€200 million): Expected to drive significant opportunities for local UK firms in North Wales, with potential awards for companies such as Keltbray and Balfour Beatty.
• Storage interface: CO₂ handling will link into HyNet North West’s offshore storage operated by Eni, with subsea tie-ins creating subcontracting opportunities for offshore specialists such as Subsea7 and Saipem.

Beyond main EPC packages, the supply chain stands to benefit in equipment supply (compressors, heat exchangers, capture solvents, filtration systems), modular fabrication, electrical systems, and construction materials.

The project is expected to support up to 500 jobs during construction, safeguard more than 200 existing roles, and create around 50 permanent positions once operational.

Strategic significance

Padeswood CCS marks a decisive step in the UK’s industrial decarbonisation strategy, placing North Wales at the heart of Europe’s emerging CCS value chain. It will also expand supply of evoZero, Heidelberg’s carbon captured cement, making net-zero building materials available at scale across major European construction projects.

By combining government support, proven CCS technology and a growing CO₂ storage hub at HyNet, the project provides a replicable model for cement and other hard-to-abate sectors worldwide.