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Front-end lessons: green megaprojects at risk unless government learns from HS2 blunders

2025-02-20 - 2025-02

AS UK taxpayers we are all stakeholders in the government’s looming megaprojects. It plans to spend billions supporting the construction of carbon capture hubs and hydrogen production plants needed to decarbonise industry and overhauling the electricity grid for greener power supplies. If we want our money spent wisely, the government must invest with history in mind, ensuring that front-end loading, benchmarking and independent due diligence by competent individuals and organisations is undertaken before spending a penny more.

If it fails to do this, we will witness similar cost and schedule overruns that have beset other major UK projects. Unless you’ve been living under a rock, you’ll be acutely aware that the UK has tarnished its reputation for effectively delivering big infrastructure projects. The government has cancelled plans to build the HS2 high speed train route connecting London and Manchester while Hinkley Point C, the country’s first new nuclear reactor since 1995 is expected to arrive at least four years late.

I’m gravely concerned about us repeating these mistakes in the race for a greener future. Unless the UK government learns lessons from the megaproject failures like HS2, the country is doomed to fall behind in its race to lead the world in CCS and hydrogen and taxpayers will once again see billions wasted simply for the want of better planning.

The Labour government’s manifesto had much to say about achieving net zero. Here are two quotes: “We will invest in carbon capture and storage, hydrogen and marine energy, and ensure we have the long-term energy storage our country needs.”

“Labour will work with industry to upgrade our national transmission infrastructure and rewire Britain.”

What are megaprojects?
To achieve its green goals requires the engineering of megaprojects. This is not a hyperbolic term used to make the coming construction of CCS networks, hydrogen plants and nuclear reactors sound more exciting. Let us turn to the Institute of Project Management for a definition: “Megaprojects are large-scale, complex ventures that typically cost US$1bn or more, take many years to develop and build, and involve multiple public and private stakeholders. Its definition extends beyond the meaning of a traditional project because megaprojects are transformational and impact millions of people.”

IPM adds: “Typically, they involve many stakeholders, take many years to develop and implement, and are significantly more complex than other projects in technology and design. Understanding the distinctions between megaprojects and typical projects is vital for effective planning and execution. Because of these factors, megaprojects need a dedicated approach to project management to be delivered successfully.”

Megaprojects present huge project management risks because of the high costs and complexities they require to manage the lengthy supply chains and array of interfaces needed as the client liaises with the design house, and the design house with the vendor, and the vendor with sub-contractors, and so on.

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Front-end lessons: green megaprojects at risk unless government learns from HS2 blunders