Industry across southwest England, the Midlands and South Wales moved closer to accessing the UK’s carbon capture and storage network on April 29, following a new agreement to advance a major carbon dioxide (CO₂) terminal at Avonmouth Docks at the Port of Bristol.

Severnside Carbon and Exolum, Europe’s largest energy logistics company, have signed an agreement under which Exolum will create a new subsidiary, Exolum 7CO₂, to invest in and lead the next phase of development of the terminal. Spanish engineering firm Técnicas Reunidas will act as an engineering and development partner.

Until now, only four UK industrial clusters in northern England and Scotland have had access to government-backed carbon capture, transport and storage infrastructure. About half of the UK’s industrial emissions fall outside these regions, including South Wales, which accounts for roughly 5% of national carbon emissions.

The Avonmouth terminal is planned as the UK’s first large-scale CO₂ hub designed for flexible, modular transport by rail and ship. Exolum 7CO₂ expects operations to begin in 2031.

Once operational, the terminal could handle up to 6 million metric tons of CO₂ annually from existing industrial emitters, an amount equivalent to the total annual emissions of southwest England. The project is intended to help safeguard industrial competitiveness as decarbonization requirements tighten.

The terminal is also expected to support emerging industries, including data centers requiring round-the-clock carbon-free power and sustainable aviation fuel projects already under development. By providing open-access CO₂ logistics, the facility aims to give energy-intensive businesses a clearer pathway to capturing, transporting and storing emissions.

Exolum said it will dedicate significant resources and a specialized team to the project, integrating the terminal with its existing UK energy infrastructure while applying a safety-first operating approach.

Severnside Carbon will continue to advise Exolum 7CO₂ on the project, maintaining continuity and relationships with public and private stakeholders. Separately, Severnside said it will continue work on capture-as-a-service offerings and a major regional investment in sustainable aviation fuel.

Técnicas Reunidas, through its low-carbon business unit track, will serve as engineering partner for the hub, contributing experience in large-scale energy infrastructure projects in the UK and Spain.

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UK deal advances carbon storage hub for industry in England, South Wales

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