Deal signed to progress cross-border Baltic Sea CCUS initiative

January 27, 2026, by Nadja Skopljak

A UK-Swedish partnership has been established to advance a cross-border carbon capture, utilization and storage (CCUS) initiative designed to accelerate industrial decarbonization across the Baltic Sea region.

Under a memorandum of understanding (MoU), the UK’s Progressive Energy and Swedish Pipe58 AB will pursue the Highway58 project, which aims to establish a new, shared CO2 transport network, connecting industrial emitters around the Baltic Sea to permanent storage as well as utilization facilities such as e-fuel producers.

The partners plan to work closely with industry, governments, and regulators to mature Highway58 from concept to a bankable infrastructure project, delivered at the scale and pace required to support Europe’s climate ambitions.

“Pipe58 has already brought Highway58 from early research through feasibility, building deep regional insight, strong stakeholder relationships, and a clear strategic focus on CO2 infrastructure tailored to the Baltic Sea region,” said David Parkin, Director of Progressive Energy. “We see clear similarities with the industrial cluster projects we have helped develop in the UK, and we look forward to advancing Highway58 together with Pipe58.”

According to the UK firm, by bringing together CO2-emitting industries across national borders, Highway58 is envisioned as the backbone of a new Baltic Sea CCUS ecosystem that supports national climate strategies, strengthens European cooperation, and contributes to reducing atmospheric carbon levels.

“Progressive Energy brings extensive experience from the development of complex low-carbon infrastructure projects, including its leading role in the HyNet North West and Peak Cluster initiatives in the UK. That experience will be highly valuable as we advance Highway58 towards commercialisation,” said Johan Beckmann, CEO of Pipe58 AB.