Sustainability Award
KPMG is helping Heidelberg Materials deliver the world’s first near zero carbon cement works by securing government backing for a pioneering carbon capture facility that will slash emissions, safeguard jobs and create a new source of ultra low carbon building materials for the UK.
Global building supplies manufacturer Heidelberg Materials has bold sustainability ambitions.
Despite making some carbon-intensive products, the firm is targeting significant reductions in the carbon embodied in its materials in the coming years.
This presents a particular challenge for its cement works in Padeswood, North Wales. Cement production is a carbon-intensive process: the plant emits around 800,000 tonnes of CO2 annually.
The solution lies in carbon capture and storage (CCS) technology. That means building a carbon capture facility at Padeswood, and connecting it to the HyNet North West carbon transport and storage network.
This requires significant investment; it would not be viable without government support.
KPMG helped Heidelberg Materials UK to secure the necessary funding, advising and supporting them by:
- articulating the government’s expectations
- distilling complex documentation on contractual and industry arrangements
- conducting contractual and financial analysis of what the government was proposing
- calculating project costs, and identifying the risks associated with CCS
- joining Heidelberg Materials UK throughout negotiations with the government
In September 2025, Heidelberg Materials reached a final investment decision with the UK Government, to build the world’s first carbon capture facility enabling fully decarbonised cement production.
It’s one of only two UK CCS projects to be greenlit – and will be the first cement works worldwide to capture almost all of its emissions. Early works to construct the facility have already begun.
The plant’s future, and the 200 jobs it supports, are on a more secure, low-carbon footing as a result. And the project will create 50 new roles. In addition, the UK construction sector will have a source of near-zero-carbon cement.
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