Government confirms funding to launch the UK's first carbon capture sites, set to bring thousands of new skilled jobs, billions in private investment and support acceleration to net zero
The UK today enters a new era for clean energy investment and jobs, as the government announces it has reached commercial agreement with industry, and funding to launch carbon capture in the UK.
Major funding for 2 carbon capture sites will inject growth into the industrial heartlands of the North West and North East of England – directly creating 4,000 jobs and supporting 50,000 jobs in the long-term while powering up the rest of the country.
This comes 10 days before the government’s set-piece International Investment Summit which is poised to put the UK back at the global table – kickstarting a decade of economic renewal and giving business confidence and opportunity to invest in the United Kingdom.
CCUS technology removes CO2 emissions before it reaches the atmosphere and stores it safely beneath the seabed – using tried and tested technology that has been deployed across the globe for over 20 years.
In a boost for economic growth and protecting the environment, the new carbon capture and CCUS enabled hydrogen projects will create 4,000 new jobs, sustain important British industry, and help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around 4 million cars off the road.
Prime Minister Keir Starmer, the Chancellor Rachel Reeves, and Energy Secretary Ed Miliband are visiting the North West today to confirm the funding for 2 sites in Teesside and Merseyside, which are expected to bring in £8 billion of private investment into these communities.
These projects will set the UK on course to become a global leader in CCUS and hydrogen – delivering good jobs and turbocharged growth for decades to come.
Prime Minister Keir 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 2 growing global sectors, CCUS and hydrogen, to be allocated between these 2 clusters. The UK’s commitment was first made in 2009, and the confirmation of funding today represents a major success story for British industry.
In the week in which Britain became the first industrialised nation to end its 150-year usage of coal to produce power, the nation now begins a new era of clean energy technology. 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.
Energy Secretary Ed Miliband said:
Chancellor of the Exchequer Rachel Reeves, said:
This announcement will also help turbocharge the low carbon hydrogen sector by paving the way for the UK’s first large-scale hydrogen production plant, decarbonising vital industrial sectors.
It also marks a game-changing development in the mission to tackle climate change – protecting the environment from harmful emissions at a time when the UK has seen a year of record-breaking temperatures. It follows advice from the independent Climate Change Committee, who described CCUS as critical for decarbonising the UK’s heavy industry and a “necessity” for the UK to reach its legally binding target for net zero emissions by 2050.
Similarly, the International Energy Agency and the Intergovernmental Panel on Climate Change have endorsed CCUS as a critical tool in decarbonisation, particularly in heavy industry such as cement and steel.
The carbon capture, usage and storage industry is expected to support 50,000 good, skilled jobs as the sector matures in the 2030s, helping to support the oil and gas sector’s transition away from high emission fossil fuels by using the transferable expertise of their workforce. This supports the UK’s mission for growth, while putting the country at the cutting edge for developing the skills of the future.
An up and running carbon capture industry is expected to add around £5 billion per year to the UK economy by 2050 and the backing of these 2 sites sends a clear signal to investors that the UK is open for business.
As part of the partnership with GB Energy and The Crown Estate, the progress on Track-1 comes as The Crown Estate awarded an Agreement for Lease to Eni to repurpose existing infrastructure to transport and store CO2, reducing cost and environmental impact.
Louise Kingham, SVP Europe and head of country, UK for bp, said:
Alex Grant, SVP and head of country, UK for Equinor, said:
Eni CEO, Claudio Descalzi, said:
James Richardson, Acting Chief Executive of the Climate Change Committee, said:
Emma Pinchbeck, Energy UK’s Chief Executive, said:
Olivia Powis, CEO of the Carbon Capture and Storage Association (CCSA), said:
Celia Greaves, CEO of the Hydrogen Energy Association, said:
Clare Jackson, CEO of Hydrogen UK, said: