• The CCSA welcomes Government commitment to fund the UK’s first carbon capture and storage projects.
• Important step in efforts to decarbonise the UK’s industrial heartlands and create thousands of skilled jobs, as well as protecting existing jobs in energy intensive industries.
• Announcement highlights the Government’s commitment to net zero targets and decarbonisation, not de-industrialisation.

The Carbon Capture and Storage Association (CCSA) welcomes the Government taking this significant step in providing funding commitment to establish the UK’s first carbon capture industry in the North East of England (the East Coast Cluster), and North West of England and North Wales (HyNet).

Carbon capture and storage technologies offer a vital route to decarbonise our industrial heartlands. With Carbon Capture, Utilisation and Storage (CCUS), we can futureproof key British industries such as cement, chemicals and other manufacturing sectors, which are critical to the UK’s clean industrial growth.

This decision demonstrates the Government’s understanding of the urgency needed to deliver net zero at pace. The deployment of the world’s first two large-scale CCUS clusters will be instrumental in achieving net zero and clean power ambitions, as well as driving sustainable economic growth across the UK’s industrial regions.

By taking this landmark step, the UK is on course to solidify its position as a world leader in CCUS and low carbon hydrogen production, as well as to meet the Climate Change Committee’s target of 20-30 million tonnes (Mt) of CO2 captured and stored by 2030, rising to 50-60 Mt by 2035.

The CCUS sector holds huge potential for economic prosperity across the UK by creating 70,000 new skilled jobs and protecting 77,000 jobs in critical industries. This is not counting the jobs and inward investment into the UK as companies re-locate here to take advantage of the CO2 transport and storage, and low carbon infrastructure that will be available in the UK’s CCUS Clusters. Industry will continue to work with government and others to achieve financial close so they can start construction as soon as possible.

CCUS and low-carbon hydrogen are essential components of any pathway to net zero power by 2030 and net zero by 2050, and today’s announcement is a significant boost to local economies, jobs and industrial decarbonisation efforts.

Olivia Powis, Chief Executive Officer at the CCSA said:
“The Government’s confirmed support for carbon capture and storage and low-carbon 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 progressing 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, chemicals and manufacturing across the UK.”

David Parkin, Chair of the HyNet Alliance said:
“HyNet was formed to meet the demands of industry wanting to decarbonise to deliver sustainable products and compete in the global low carbon economy. We need to decarbonise, not by de-industrialising, but by investing in the industries that we rely on for the every day products in our lives – from the glass bottles we use for our food and drink to the cement we use to build roads and buildings.”

“Government’s commitment to HyNet will also enable generation of resilient low carbon power, right here in the industrial North West and North Wales, supporting its Clean Power 2030 Mission.”

“This will create new roles and safeguard existing jobs, attracting investment and catalysing growth.”

Chris Daykin, General Manager, Northern Endurance Partnership, said:
“Today’s announcement is a significant milestone in the development of CCUS infrastructure in the UK and the journey to Net Zero emissions by 2050. The Northern Endurance Partnership, as the CO2 transportation and storage infrastructure provider to the East Coast Cluster, has a crucial role to play in the decarbonisation of Teesside and the Humber – helping create and support thousands of jobs and helping to establish the regions as globally-competitive low carbon hubs for industry and innovation.

“Construction will commence once all statutory processes are complete and financial close is achieved.”

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