The approved two carbon capture sites are in Teeside and Merseyside. The government has said that the projects are set to create 4,000 new jobs, attract £8 billion of private investment and “accelerate” the UK towards net zero in 2050.
The new carbon capture and CCUS-enabled hydrogen projects will aim to remove over 8.5 million tonnes of carbon emissions each year.
Prime minister Keir Starmer, the chancellor Rachel Reeves and energy secretary Ed Miliband are visiting the North West today to confirm the funding for the two sites.
Starmer said: “Today’s announcement confirms up to £21.7 billion of funding available, over 25 years, to make the UK an early leader in two growing global sectors, CCUS and hydrogen, to be allocated between these two clusters. The UK’s commitment was first made in 2009, and the confirmation of funding today represents a major success story for British industry.
“The UK has enough capacity to store 200 years’ worth of emissions – making CCUS a revolutionary method in tackling the climate crisis and helping industry to decarbonise.”
James Richardson, acting chief executive of the Climate Change Committee, said: “It’s fantastic to see funding coming through for these big projects. We can’t hit the country’s targets without CCUS so this commitment to it is very reassuring. It will no doubt provide comfort to investors and business about the direction of travel for the country.
We know these projects will provide good, reliable jobs in communities that need them. It is important that prosperity for these parts of the country is built into a clean energy future.”
‘A welcome commitment’
Olivia Powis, CEO of the carbon capture and storage association (CCSA), said: “The industry has made significant strides towards deploying carbon capture projects and by establishing the first two CCUS clusters in the North West and North East of England, it means that we can deliver thousands of new highly skilled jobs whilst reducing our CO2 emissions and retaining existing jobs in our industrial areas in critical industries like cement and manufacturing across the UK.”
Mike Maudsley, CEO at enfinium, commented: “Today’s funding announcement is a welcome commitment from the UK government in the country’s carbon capture and storage industry. It will unlock billions of pounds of future investment from businesses like enfinium that are seeking to invest in clean growth.
“Projects like Parc Adfer in Deeside can support the continued build-out of the HyNet industrial cluster over the coming years, supporting green jobs and carbon negative power by 2030.”
Encirc managing director Sean Murphy, said: “Encirc was delighted to have played host to the prime minister, chancellor and energy secretary at our facility in Chester today. The government’s announcement is a huge step forward for sustainable manufacturers like ourselves, and will help support the journey towards the production of billions of low carbon glass bottles and jars for global food and drinks brands across the UK.
“As a business with sustainability at its core, Encirc has been a longtime innovator in finding ways to reduce our carbon footprint, both on the manufacturing process as well as in logistics and supply chain. The regional focus is a sign of confidence for businesses here in the north west, and we hope further afield, including places like Fermanagh which are often left behind.
“We look forward to working with UK government on a range of issues to ensure that the right conditions are in place to enable the sort of inclusive green growth that benefits everyone across society.”
Green jobs
CEO of the Vidrala Group, Raul Gomez, said: “We are living in challenging times for consumer related industries. Today, more than ever, we need investments and protection, and that’s why we are honoured to host the prime minister and to welcome the support in this announcement.”
Stuart Hayward-Higham, chief technical development and innovation officer for Suez recycling and recovery UK, said: “We welcome the government’s continued and increased investment in carbon capture and storage and its recognition of the requirement to have CCUS clusters which will generate thousands of green jobs, and help the UK reach its net zero target. As a leader in environmental services, we’re focused on reducing the carbon footprint of our customers’ waste and as such we have a clear strategy for the design and construction of carbon capture. We look forward to the next round of bids for EfW carbon capture projects for the East Coast Cluster.”
Kevin Bradshaw, Viridor CEO, said: “Viridor is celebrating the news that the government has today announced £21.7bn to fund carbon capture projects in the UK, including the HyNet cluster in the North West. As a key member of the HyNet Alliance, Viridor’s Runcorn Carbon Capture and Storage (CCS) project is now one step closer to fruition thanks to this commitment. Our CCS project is integral to Viridor’s commitment to decarbonise energy from waste production and will capture and store up to 1 million tonnes of CO2 annually from our Runcorn Energy Recovery Facility. The Runcorn CCS project not only supports the UK’s net zero targets but also plays a vital role in creating a cleaner, greener future for the region. In addition to the environmental benefits, this project will generate new jobs, stimulate economic growth, and position the North West as a leader in sustainable innovation.”
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