Heidelberg Materials has secured a final investment decision (FID) from the UK government for the construction of a carbon capture and storage (CCS) facility at its Padeswood cement works in North Wales, UK.
This initiative marks a significant step towards decarbonising cement production, aligning with the UK government’s objectives to cut carbon dioxide (CO₂) emissions while fostering economic growth within the construction sector.
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The announcement was made by the Department for Energy Security and Net Zero Energy Minister Michael Shanks.
The project at Padeswood is set to be the first of its kind in the UK and represents Heidelberg Materials’ first full-scale carbon capture facility to reach a FID.
Construction is set to commence later this year, with an aim to produce evoZero carbon-captured net-zero cement in 2029.
The Padeswood CCS project is expected to deliver substantial economic benefits for North Wales, safeguarding over 200 existing jobs and creating approximately 50 new positions.
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By GlobalDataAdditionally, it is expected to generate up to 500 jobs during the construction phase.
Cement production is a major source of CO₂ emissions due to the chemical processes involved, which cannot be mitigated through low-carbon or renewable energy alone.
The Padeswood facility is designed to capture nearly 95% of CO₂ emissions from its operations, including biogenic CO₂ from biomass fuels derived from domestic waste.
This could potentially render the cement produced at Padeswood net negative in terms of carbon emissions, Heidelberg Materials said.
Captured carbon will be compressed and transported via an underground pipeline for secure storage beneath Liverpool Bay as part of the HyNet North West project.
Heidelberg Materials CEO Simon Willis said: “Our constructive partnership with the UK government has allowed us to reach this major milestone, which is fantastic news, not just for us, but for the industry as a whole.
“Our new facility at Padeswood will be a world-leader. It will capture around 800,000 tonnes of CO₂ a year from our existing cement works, allowing us to produce evoZero carbon captured net zero cement, which will help the UK construction industry reach its decarbonisation aims.”
Last November, Heidelberg Materials North America, in a move to expand its footprint in the US construction materials market, signed a deal worth around $600m to acquire Giant Cement and its subsidiaries. The deal closed in April 2025.
