Encyclis and UK Government sign landmark agreement on UK’s first full-scale carbon capture project for Energy-from-Waste

Encyclis and the UK Government’s Department for Energy Security and Net Zero (DESNZ) have reached a landmark agreement on the commercial framework to deliver the UK’s first full-scale carbon capture plant for Energy-from-Waste. The confirmation of Government support for the Protos carbon capture and storage (CCS) project, near Ellesmere Port in Cheshire, North-West England, is a breakthrough for the UK’s industrial carbon capture deployment, which will advance the UK’s net zero transition and drive economic growth.

• UK’s first full-scale carbon capture plant at an Energy-from-Waste facility to be developed at Encyclis’ Protos EfW facility in Cheshire, preventing the release of around 370,000 tonnes of CO₂ per year – creating a blueprint for the decarbonisation of waste
• Captured CO₂ from Protos Energy Recovery Facility (ERF) will be transported via pipeline for permanent and secure storage in depleted gas reservoirs in Liverpool Bay.
• Project is supported by the Department for Energy Security and Net zero as part of Government’s £21.7bn investment in UK carbon capture, which is set to create thousands of jobs between now and 2050.
• Energy Minister Michael Shanks said: “Encyclis’ Energy-from-Waste project is not only pioneering Britain’s reindustrialisation, it’s creating hundreds of skilled jobs and new opportunities for workers in the North West… This project shows how government and industry can work together to deliver real innovation and climate leadership in the heart of Cheshire.”

Today’s announcement puts the Protos carbon capture plant on track to be operational by mid-2029. The plant will capture around 370,000 tonnes of carbon dioxide per year from Encyclis’ adjoining Protos Energy Recovery Facility (ERF), which provides an essential public service by safely and sustainably converting non-recyclable waste into baseload electricity, heat and other reusable resources.

Flue gases from the Energy-from-Waste facility, which is currently in commissioning, will be diverted to the new carbon capture plant, where a proven filtration process will be used to strip out CO₂. As part of the HyNet North West decarbonisation cluster, the captured CO₂ will then be transported to Liverpool Bay for permanent sub-sea storage via a pipeline operated by ENI.

The construction and commissioning of the Protos carbon capture plant will directly support up to 500 skilled jobs and is expected to deliver a significant boost to the regional supply chain. This is in addition to the 2,000 jobs supported by the construction of the Liverpool Bay transport and storage system.

Encyclis Chief Executive Mark Burrows-Smith said:

“We have secured a once-in-a-generation opportunity to begin decarbonising waste treatment in the UK. This first full-scale carbon capture deployment in the UK enables us to continue providing an essential treatment service for non-recyclable waste while reducing carbon emissions, creating new skilled jobs and clearing a pathway for wider adoption across the industry.

“We are not only building a carbon capture plant but setting the foundations for a new era of industry transformation which helps the UK achieve its greenhouse gas reduction targets and manage its resources more efficiently.”

Of the 370,000 tonnes of CO₂ captured per year, around 50% will be from biogenic sources and removing this CO₂ enables Protos to provide waste treatment that goes beyond net zero by effectively preventing the release of CO₂ that would have reached the atmosphere as part of the natural carbon cycle. The trading of carbon removal credits from this biogenic CO₂ will generate revenues which are paid back to Government.

Encyclis’ Protos ERF is currently in the commissioning phase. When operational, the facility will process up to 500,000 tonnes of residual waste each year, generating 49.9MW of baseload electricity for the National Grid.

Today’s announcement follows the Government’s commitment to invest £21.7bn in carbon capture projects in the UK over the next 25 years, announced last autumn, helping to establish the UK as a global leader in the fast-growing carbon capture sector in line with the Government’s industrial strategy and helping to meet its legally-binding net zero target.

Michael Shanks, Parliamentary Under-Secretary of State in the Department for Energy Security and Net Zero, said:

“Encyclis’ Energy-from-Waste project is not only pioneering Britain’s reindustrialisation, it’s creating hundreds of skilled jobs and new opportunities for workers in the North West. The government’s clean energy mission means good jobs, regional growth, and investment for local communities – and this project shows how government and industry can work together to deliver real innovation and climate leadership in the heart of Cheshire.”

Anna Sundell, Partner at Encyclis’ shareholder EQT, the global investment organisation, said:

“Since 2021, EQT has worked closely with Encylis to accelerate its delivery of Energy-from-Waste infrastructure across the UK. Delivering the UK’s first full-scale carbon capture plant at an Energy-from-Waste facility, is the latest testament to the company’s industry leadership and alignment with the UK’s environmental and economic goals. Today’s news illustrates the benefits that can come when private capital works hand-in-hand with the public sector to deliver projects for the benefit of all.”

Olivia Powis, CEO of the Carbon Capture and Storage Association (CCSA), said:

 “Encyclis’ carbon capture plant at its Protos Energy Recovery Facility, part of the HyNet Cluster in the North-West and North Wales, will mark another pivotal step in the UK’s journey to decarbonise Energy-from-Waste – a hard-to-abate sector. This decision demonstrates how, with the right policy, investment and regulatory framework, CCUS can be deployed at scale to cut industrial emissions while delivering low-carbon power and a net carbon removal solution.

“By capturing CO₂ from unrecyclable waste and transporting it via pipeline to Eni’s storage site in Liverpool Bay, the project illustrates how waste can be harnessed to both provide reliable clean energy, strengthening energy security, and decarbonise essential waste management infrastructure. Crucially, it will also create skilled jobs and drive economic growth in local communities, proving that climate action and industrial development go hand in hand.”

Jane Gaston, CEO of Net Zero North West, said:

“This landmark announcement and investment highlights the huge potential of this site, and marks the first of a number of opportunities that could deliver carbon capture solutions in the North West. We welcome the 500+ local jobs, benefits to local supply chains and a large reduction in CO2 emissions this latest project will bring to the region. We also look forward to building momentum around its delivery, as the North West continues to lead in the UK’s clean energy transition.”

David Parkin, Chair of the HyNet Alliance, said:

“This Final Investment Decision, as part of HyNet, is a vote of confidence in the UK’s industrial future. Encyclis is investing in clean technology that will protect jobs, create new opportunities, and help local economies thrive. This is a clear demonstration that decarbonisation is not just about reducing emissions – it is also about driving economic growth and securing the long-term prosperity of our industrial heartlands.”

Encyclis is in late-stage negotiations with project finance lenders as the final step to reach financial close of the development later this month.