The UK, with its strong governmental backing in green technologies, is becoming a hotspot for climate tech startups.
- British government’s commitment to carbon capture technology was reaffirmed with significant financial support announced in the recent Autumn budget.
- Research highlights London as a leading city in climate tech funding, attracting international startups like Swiss-based Neustark.
- Neustark is expanding into the UK with its carbon removal technology in partnership with Aggregate Industries, targeting the construction sector.
- Despite support, some experts question the effectiveness of carbon capture technology in reaching net-zero emissions targets.
Recent developments have positioned the United Kingdom as a promising environment for startups specialising in climate technology, particularly those focused on carbon capture and storage. The government’s reinforced support for green technologies was evident in the recent Autumn budget, where substantial investments were earmarked for hydrogen power and carbon capture initiatives. This financial commitment underscores the UK’s ongoing efforts to create a sustainable future and attract international climate tech startups.
A study conducted by London and Partners alongside Dealroom has revealed that London secured the second-highest climate tech funding globally in 2023, following only Stockholm. This favourable funding landscape is drawing startups like Neustark, a rapidly growing Swiss company known for its innovative carbon removal solutions. The firm is making significant strides in the UK market through a strategic collaboration with Aggregate Industries, a local building materials supplier.
Neustark’s technology, which effectively captures carbon and stores it in recycled concrete containers, is poised to make a significant impact within the British construction industry. Having successfully established 19 sites across mainland Europe, the startup is confident in the UK’s mature infrastructure and supportive policies. The newly operational site in Greenwich, London, aims to sequester 1,000 tonnes of carbon dioxide annually. Valentin Gutknecht, CEO of Neustark, expressed the UK’s market potential owing to its conducive business environment and government support.
Despite these advancements, there are voices of caution regarding the reliance on carbon capture technology. A report from the Institute for Energy Economics and Financial Analysis (IEEFA) flagged concerns over the technology’s delivery on net-zero promises, highlighting that a significant number of projects globally are underperforming. Bruce Robertson, the report’s author, argued that expecting carbon capture alone to achieve climate targets is unrealistic, urging for broader integration within existing industries beyond oil and gas.
While the UK’s strides in supporting carbon removal technologies show promise, the true efficacy of such solutions remains open to scrutiny as experts call for more integrated approaches across industries.
