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 two 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 ten 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 four million cars off the
road.
Prime Minister , the Chancellor , and Energy Secretary are visiting the North West today to confirm the
funding for two 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 said:
“We're reigniting our industrial heartlands by investing in the
industry of the future.
“For the past 14 years, business has been second-guessing a
dysfunctional government – which has set us back and caused an
economic slump.
“Today's announcement will give industry the certainty it needs –
committing to 25 years of funding in this groundbreaking
technology – to help deliver jobs, kickstart growth, and repair
this country once and for all.”
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.
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 said:
“On Monday, 150 years of coal in this country came to an end.
Today, a new era begins.
“By securing this investment, we pave the way for securing the
clean energy revolution that will rebuild Britain's industrial
heartlands.
“I was proud to kickstart the industry in 2009, and I am even
prouder today to turn it into reality. This funding is a
testament to the power of an active Government working in
partnership with businesses to deliver good jobs for our
communities.”
Chancellor of the Exchequer , said:
“This game-changing technology will bring 4,000 good jobs and
billions of private investment into communities across Merseyside
and Teesside, igniting growth in these industrial heartlands and
powering up the rest of the country.
“Working in partnership with business is at the heart of our plan
to deliver strong growth and investment, so we can rebuild
Britain and make everyone better off”. 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 two 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:
“This announcement represents another step forward for the
Northern Endurance Partnership and East Coast Cluster.
“Major projects like these have the potential to help stimulate
economic growth – supporting thousands of jobs, helping UK
companies prosper through the vast supply chains involved and
creating the infrastructure to help major industrial companies
with their decarbonisation plans.
“Collaboration is key in helping to progress and deliver the
energy transition in the UK, and we look forward to continuing to
work alongside the government and our partners to move these
innovative projects forward.”
Alex Grant, SVP and head of country, UK for Equinor, said:
“We welcome this major milestone in progressing these two key
projects and applaud the hard work and collaboration that has led
us here.
“Equinor has been an energy partner with the UK for over 45 years
and today's announcement is a step for both Equinor and the UK to
progress our energy partnership further.
“This will help decarbonise the country's industrial heartlands
and achieve its net zero ambitions whilst providing jobs and
value creation.
“The UK will continue to be a key market for Equinor, building on
our history of significant energy provision along its East Coast,
which is transitioning from traditional oil and gas demand to
renewables and low carbon options like CCS and hydrogen.”
Eni CEO, Claudio Descalzi, said:
“Today's news is an important step towards the creation of a new
business chain linked to the energy transition.
“HyNet will become one of the first low-carbon clusters in the
world and the project will decarbonise one of the key
energy-intensive industrial districts as well as unlock
significant economic growth in this region of the UK.
“This commitment is clear evidence of how governments and
industry can work together to implement pragmatic and effective
industrial policies, in order to accelerate decarbonisation. On
our side, it reaffirms Eni's role as a key partner with the UK in
enabling its journey towards Net Zero.”
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.”
Emma Pinchbeck, Energy UK's Chief Executive, said:
“CCUS is a tool in our armoury of technologies which we need to
decarbonise parts of energy that we currently can't do with clean
electricity, such as major industrial processes.
“The energy transition is gathering pace, and the development of
CCUS here for industrial processes unlocks inward investment,
creates jobs and helps areas with a proud history of engineering
and industry pioneer the technologies of the future in the
UK."
Olivia Powis, CEO of the Carbon Capture and Storage Association
(CCSA), said:
“The Government's confirmed support for carbon capture and
storage and hydrogen demonstrates their commitment to the UK's
journey to net zero.
“Today's announcement shows that decarbonisation does not mean
de-industrialisation, and highlights the UK's leadership in these
important technologies.
“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.”
Celia Greaves, CEO of the Hydrogen Energy Association, said:
“This is a vital step forward, catapulting hydrogen towards
long-term certainty we need in the UK. Supporting hydrogen at
scale in two of the biggest UK industrial clusters is the
government giving hydrogen another green light as a key component
of its green energy ambitions. We particularly welcome the news
that this will provide thousands of new jobs given the HEA's
solid focus on hydrogen's role in delivering clean growth.
“Our own project map has built up a blueprint of hydrogen
endeavours across all parts of the UK and this significant
investment in carbon capture clusters is going to bring forward
the first large scale projects we have seen in the country.
What's more, it will inject further enthusiasm for wider
investment to power-up business confidence which will have a
knock-on effect of continuing to position the UK as a global
player in hydrogen technology and innovation.”
Clare Jackson, CEO of Hydrogen UK, said:
“We are thrilled to see the UK Government's commitment to
advancing Track-1 clusters in partnership with the private
sector. This initiative is a crucial step forward for regional
development, driving economic growth, and creating high-quality
jobs across the country.
“The integration of CCUS technology with hydrogen production is
pivotal for achieving our net-zero targets. CCUS-enabled hydrogen
not only provides a low-carbon, and scalable energy solution but
also ensures the UK remains at the forefront of the global
hydrogen economy.
“By moving forward with Track-1, we are laying the foundation for
a cleaner, more resilient energy future for all.”
Notes to editors:
• The two sites, following permitting decisions, aim to start
capturing harmful CO2 emissions from 2028 with a capacity of
capturing and storing over 8.5 million tonnes annually.
• This is the latest step in the Government's mission for clean
power and energy security, building on the launch of Great
British Energy, lifting the ban on onshore wind and delivering a
record number of clean energy projects through its renewables
auction – all part of the plan to protect billpayers from
volatile energy price spikes driven by fossil fuels.
• Carbon capture is already powering other countries' progress
towards net zero, with 41 CCS facilities in operation as of
November 2023. This investment in the UK's future will help the
country to become an early adopter of a growing technology – over
300 CCUS facilities are in development across the world. Norway
has been capturing and storing CO2 emissions for decades, with
over 20 million tons of CO2 stored.
• The UK's world-leading business model is the gold standard for
delivering CCUS at scale – giving investors long-sight of
expected revenues. This, combined with the country's unique
geology to store up to 78 billion tonnes of CO2 under the North
Sea, provides the stable investment environment needed for
economic growth.
• Construction of the projects will commence once final
investment decisions have been taken and financial close achieved
and all statutory processes are complete.
