The UK government has dedicated up to £21.7bn towards two major carbon capture and storage clusters, indicating significant investment in climate technology.
- Prime Minister Keir Starmer confirmed financial backing for the East Coast Cluster and the HyNet hub, projecting substantial CO₂ storage and job creation.
- The Department for Energy Security and Net Zero has contracted Jacobs to provide technical project management for the carbon capture initiative.
- New research highlights the UK’s potential to lead in carbon capture, with significant offshore storage capabilities and economic benefits.
- Industry and government voices stress the critical role of carbon capture in achieving net zero, urging further acceleration and investment.
In a major move to advance its climate agenda, the UK government has pledged up to £21.7 billion towards developing two significant Carbon Capture, Usage and Storage (CCUS) hubs. This funding aims to establish the East Coast Cluster on Teesside and the HyNet hub in the northwest and north Wales, with an anticipated carbon dioxide holding capacity of 8.5 million tonnes annually. Additionally, these projects are expected to generate around 4,000 new jobs, underlining the dual benefit of environmental and economic gains.
The government has outlined a 25-year financial commitment to these projects, with the initiation of construction contingent on final investment decisions by developers. Prime Minister Keir Starmer stated, “We’re reigniting our industrial heartlands by investing in the industry of the future.” This announcement is seen as a means to provide industry with the certainty needed to deliver jobs and promote growth.
Significant support comes from the Department for Energy Security and Net Zero (DESNZ), which has appointed Jacobs to provide technical project management and strategic advisory services. Jacobs will also support the Hydrogen and Industrial Carbon Capture program, bringing expertise in critical infrastructure and whole energy systems to ensure the CCUS programme’s success.
Research indicates that the UK holds immense potential in the realm of carbon capture, with Offshore Energies UK referring to this as a “once-in-a-lifetime opportunity.” The country’s depleted oil and gas reservoirs could potentially store up to 78 billion tonnes of carbon dioxide, establishing the UK as a leader in offshore storage capacity in Europe.
The industry is calling for more rapid development of CCUS infrastructure, with recommendations for simplifying funding mechanisms, leveraging existing infrastructure, and facilitating non-pipeline CO₂ transportation. These steps are crucial to maintaining the UK’s competitive advantage in this sector. Stakeholders emphasise that carbon capture is essential not only for decarbonising heavy industries but also for protecting jobs and enhancing economic growth.
Investments in this sector are poised to significantly contribute to the UK economy, with expectations of adding over £100 billion by 2050. The projects are seen as pivotal in meeting the government’s 2030 clean power targets and providing low-carbon power to support renewable energy sources.
There is a strong momentum within the CCUS community, as noted by stakeholders such as Jacobs and The Crown Estate. Their collaborative efforts are set to ensure the deployment of innovative and impactful carbon capture solutions, highlighting the importance of strategic partnerships in advancing the UK’s net zero ambitions.
The announcement by the government and its associated initiatives have been met with positive responses from industry leaders and climate advisers alike. With potential economic growth and job creation, the projects are expected to solidify the UK’s role in the global decarbonisation effort.
The UK government’s substantial investment in carbon capture underscores its commitment to combating climate change and revitalising industrial sectors.
