The UK government has secured a commercial agreement with the clean energy sector, launching a major funding initiative for carbon capture. This investment, worth £21.7 billion over 25 years, aims to position the UK as a global leader in carbon capture, usage and storage (CCUS) and hydrogen technology.
Teesside and Merseyside Projects
The two approved carbon capture sites will be located in Teesside and Merseyside. These projects are expected to create 4,000 new jobs, attract £8 billion in private investment, and accelerate the UK’s journey towards its 2050 net-zero emissions target. The carbon capture and CCUS-enabled hydrogen schemes are projected to remove over 8.5 million tonnes of carbon dioxide annually.
Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Energy Secretary Ed Miliband visited the North West to officially announce the funding. Starmer remarked: "This £21.7 billion investment will position the UK as a leader in the rapidly growing global sectors of CCUS and hydrogen. The UK’s capacity to store 200 years’ worth of emissions underscores CCUS’s potential in addressing the climate crisis and decarbonising industry."
Industry and Expert Reactions
James Richardson, Acting Chief Executive of the Climate Change Committee, praised the announcement: "This funding is crucial for achieving the UK’s climate targets. CCUS is an essential part of the strategy, and today’s commitment will bring certainty to investors and businesses. Importantly, these projects will also bring reliable, well-paid jobs to communities that need them."
Olivia Powis, CEO of the Carbon Capture and Storage Association (CCSA), echoed this sentiment: "The establishment of the first two CCUS clusters in the North West and North East marks a significant step forward. These projects will not only reduce CO2 emissions but also create thousands of highly skilled jobs and safeguard employment in critical industries such as cement and manufacturing."
This commitment represents a significant milestone in the UK’s efforts to combat climate change while fostering economic growth in key industrial regions.
Understanding Carbon and Making an Impact
Did you know that, in partnership with Smart Carbon, Wastepack offer a Carbon service to help your business calculate your carbon footprint?
In recent years, carbon management has moved higher up the agenda for many business, whether it be to work towards green credentials, identifying areas of cost-savings, or to secure supply chains. Many organisations are setting targets to achieve net-zero and while some carbon legislation may be intended for larger organisations, smaller suppliers of these businesses are likely to be required to get involved with carbon data and lifecycle assessment to secure contracts.
Wastepack can help you learn more about how carbon may impact your business and how to help mitigate the risk. Find out more about our carbon service here.
If you have any questions about our service you can contact the Carbon Team at carbon@wastepack.co.uk.
