Carbon-capture cement: Managing risk in the race to net zero

Dane Westwood, performance bond construction specialist at construction bond provider CG Bonds, explores how the UK’s first carbon-capture cement plant will transform construction, examining the implications for materials, supply chains, and project surety.

Cement’s carbon challenge

Cement is one of construction’s hardest materials to decarbonise. Globally, it accounts for around 8% of total CO 2 emissions, releasing roughly 900 kg of CO2 per tonne of Portland cement. In the UK, emissions have fallen by about 63% since 1990, totalling around 6.6 million tonnes in 2023, largely through efficiency gains, which are now reaching their limit, highlighting the need for process change.

The main obstacle lies in heating limestone to make clinker, which releases CO2 in “process emissions,” which can’t be eliminated by switching fuels. To reach net zero, around 61% of future reductions must come from carbon-capture technology. This makes carbon capture essential to cement’s decarbonisation and central to the financial and operational strategies of businesses that rely on it.

The padeswood breakthrough

In September 2025, Heidelberg Materials confirmed plans for the UK’s first large-scale carbon-capture facility at its Padeswood cement works in North Wales. When operational in 2029, it will capture around 800,000 tonnes of CO2 per year, becoming the world’s first fully decarbonised cement plant in commercial use.

Supported by £9.4 billion in government funding, Padeswood marks a shift from research to implementation. Net-zero cement is moving from ambition to near-term reality. For construction, this brings both opportunity and complexity. New materials will reshape specifications, costs will fluctuate, and suppliers must adapt to new standards and certifications.

Implications for Construction: Cost, risk, and supply

New Materials and Standards

Carbon-capture cement will bring new sustainability certifications and product categories to the market, requiring contractors and designers to adapt quickly. While low-carbon blends using fly ash or slag will remain valuable, they alone can’t deliver the deep emissions cuts needed without capture technology.

Managing the Risk of Carbon Leakage

As UK production decarbonises, imported cement could become a weak link. Imports account for around one-third of the market, and cheaper, higher-emission alternatives risk undermining progress. Verification and mandated green procurement policies will be vital to maintain genuine carbon savings.

Financial and project assurance

Building and operating carbon-capture facilities is expensive, and costs will flow through the supply chain. Contractors and developers must rethink pricing, fixed-price contracts, and financial risk.

Projects may need to include carbon-related contingencies; therefore, during the tender process, the potential costs associated with managing these requirements could influence the overall contract sum and, in turn, increase the bond value.

Skills, jobs, and long-term value

The transition also creates economic opportunities. At Padeswood, the project will safeguard over 200 jobs, create around 50 permanent roles, and support hundreds of temporary construction positions.

Across the industry, new projects will generate demand for engineers, technicians, and specialists in logistics and carbon accounting. Investing in these skills is key to maintaining a competitive construction workforce as low-carbon technologies expand.

A national shift towards net-zero materials

Padeswood is just one part of a growing national shift toward net-zero materials. In Cheshire, the Protos energy-from-waste plant will capture around 370,000 tonnes of CO₂ a year, transporting it offshore via the HyNet pipeline.

The Peak District Net-Zero Cement and Lime Cluster will link five industrial plants to shared carbon storage, capturing over 3 million tonnes annually and protecting thousands of jobs. At Hanson’s Ribblesdale site, a hydrogen-fuel trial is also proving how alternative energy can further reduce emissions. Together, these initiatives show carbon capture moving from small trials to a major part of the UK’s decarbonisation plans

Preparing for a low-carbon future

Construction firms must adapt financially, operationally, and strategically.

Key steps include:

• Measuring embodied carbon to set baselines and targets.

• Engaging early with suppliers to establish certified, verifiable supply chains and understand long-term pricing agreements.

• Building contractual flexibility for carbon-related cost changes.

• Upskilling teams in sustainable materials and carbon reporting.

A new foundation for construction

The UK’s first net-zero cement works marks a defining moment for sustainable construction. Carbon capture has moved from concept to reality, and firms that prepare for its financial and operational challenges will be best placed to succeed. As carbon capture expands, the industry’s progress will rely as much on financial and operational resilience as on technological innovation.

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