Out-Law News 2 min. read

Water supply risk could jeopardise UK net zero targets

Low water levels at the Woodhead Reservoir in Derbyshire during the summer 2025 drought

Water shortages over the next three decades will impact carbon capture plans, experts have warned. Photo: Christopher Furlong/Getty Images


New research casting concerns over demands on the UK’s water availability could have a major impact on carbon capture projects in the country, an expert has warned.

The research by Durham University (pdf, 36pages/5mb) found some areas of the UK could face water shortages through industrial growth, with water scarcity having the potential to hamper the country’s ability to hit net zero targets.

Decarbonisation efforts – which are associated with carbon capture and hydrogen production - could add up to 860 million litres per day of water demand by 2050, and many areas of the country would face non-domestic water shortages before that point, according to the report, which was funded by water provider Wave.

Nick McDonald, a planning expert with Pinsent Masons, said that the findings showed a clear need for the government to get to grips with the issue urgently.

”Water availability has significant potential to impact the viability of energy and decarbonisation projects, in much the same way as electricity grid access issues have and still are,” he explained.

“Resolving those grid issues is taking time and has impacted investment confidence in some schemes. We may see the same dynamic for certainty of water availability, and that's something the government and regulators need to rapidly get on top of.

“CCS and low carbon hydrogen projects are typically 'first-of-a-kind' and have a number of challenges to overcome which, with the right support and regulatory backdrop, they can."

The university calls on decarbonisation projects to work with water companies at the earliest stages to make sure they are aligned with water resource availability from the start, and to look at pooled resources around regional water hubs to reduce freshwater demand, among its recommendations.

The report comes after a warning by the Environment Agency earlier this year that the UK faces a 5 billion litre a day water shortfall over the next thirty years.

Robbie Owen, a water industry expert with Pinsent Masons, added that as government considers the future legislative and policy framework for the water sector in England - with a white paper following the Cunliffe Commission’s report due for publication imminently - the needs of the modern economy would need to be factored into the reform proposals.

“The absence of a duty to supply for non-domestic purposes clearly places an even greater emphasis on the need for industry and water companies to work together, so that net zero technologies and the demands of a digital economy, particularly data centres, are as water conscious as possible - to protect water supplies, food security and the environment,” he said.  

Climate change, population growth and increased industrial demand – particularly in growing technologies such as data centres - have been cited as key contributors to the water shortage faced by the UK over the next couple of decades, as the government looks to drive a water saving initiative over the winter.

Amid concerns about the impact of water demands from the data centre industry, however, a TechUK report earlier this year found that 51% of surveyed UK data facilities make use of waterless cooling systems. 

Only 14% of the data centres featured in the report use more than 10,000 cubic metres of water per year, as technology improvements and environmental concerns encourage greater use of non-water based cooling systems.

Simon Mathius, the professor who authored the Durham University report, said: “To ensure sustainable resource use, it's vital that decarbonisation project managers work closely with water companies.

“Exploring innovative ways to reduce the water demand of decarbonisation technologies must be a priority. Regional desalination hubs and adaptive water management strategies should also be part of the conversation.”

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