The UK government has confirmed funding for the country’s first carbon capture sites, in a move expected to generate thousands of new skilled jobs and attract billions in private investment. The announcement comes as the UK seeks to accelerate its journey towards net zero.
The government has reached a commercial agreement with industry to launch carbon capture clusters in Teesside and Merseyside, which will capture harmful carbon dioxide (CO2) emissions before they enter the atmosphere. The captured CO2 will be safely stored beneath the seabed using technology that has been in use globally for over two decades.
This initiative marks a significant milestone in the UK’s clean energy strategy, just days after Britain became the first industrialised nation to end its reliance on coal for power generation, bringing an end to 150 years of coal usage.
Major Boost for Jobs and Investment
The new carbon capture sites are expected to directly create 4,000 jobs, with a further 50,000 supported across the UK’s industrial heartlands in the North West and North East of England. In addition, the projects are set to attract £8 billion in private investment, helping to stimulate economic growth in these regions.
Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Energy Secretary Ed Miliband are visiting the North West to confirm funding for the sites. The projects will be a key part of the government’s long-term strategy to reach net zero by 2050, with up to £21.7 billion committed over the next 25 years to develop carbon capture and hydrogen technologies.
Prime Minister Starmer said: “We’re reigniting our industrial heartlands by investing in the industry of the future. 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.”
Decarbonising Industry
Carbon capture and storage (CCUS) technology works by removing CO2 emissions before they are released into the atmosphere, a crucial method for decarbonising heavy industries such as steel and cement production. The UK’s carbon capture sites are expected to remove over 8.5 million tonnes of CO2 annually, equivalent to taking around four million cars off the road.
The announcement is seen as a critical step towards decarbonising vital industries, with the independent Climate Change Committee previously describing CCUS as essential for the UK to meet its net zero target.
Energy Secretary Ed Miliband said: “By securing this funding, we pave the way for the clean energy revolution that will rebuild Britain’s industrial heartlands.”
The projects will also support the development of low-carbon hydrogen, with plans for the UK’s first large-scale hydrogen production plant to be built alongside the carbon capture sites.
Global Leader in Carbon Capture
The UK aims to be at the forefront of CCUS technology, with enough capacity to store 200 years’ worth of carbon emissions. The sector is expected to add £5 billion to the UK economy annually by 2050. The projects in Teesside and Merseyside are part of a broader government strategy to position the UK as a global leader in clean energy and carbon reduction technologies.
The announcement signals a new era for the clean energy industry, with significant benefits for the environment and long-term economic growth.