In a landmark move to achieve the UK’s climate goals, the government has committed nearly £22bn to fund carbon capture and storage (CCUS) technology, a crucial component of the nation’s strategy to cut greenhouse gas emissions. The initiative is set to create jobs and drive private investment in two major industrial regions, Merseyside and Teesside.
Driving Innovation and Investment in Industrial Regions
The government’s pledge, which comes with promises of up to £21.7bn in funding over the next 25 years, is aimed at establishing two new “carbon capture clusters” in Merseyside and Teesside. These areas, known for their heavy industry, will be at the heart of the UK’s transition to a greener economy. The CCUS technology will capture harmful carbon emissions from high-polluting industries such as steel, cement, and gas power plants, storing the gas underground in old oil and gas fields beneath the sea.
The plans are designed to attract £8bn in private investment and generate thousands of jobs. It’s estimated that 4,000 direct jobs will be created, with a further 50,000 supported across supply chains and related industries.
A Critical Component for Net Zero Goals
Energy Security and Net Zero Secretary Ed Miliband heralded the announcement, stating that “a new era begins today.” He added that CCUS would not only cut emissions but also deliver “good jobs” while ensuring the UK remains a leader in innovative green technologies.
Prime Minister Sir Keir Starmer also praised the move, saying it was a key step in “reigniting our industrial heartlands by investing in the industries of the future.” He noted that it will bring certainty to businesses and provide a boost to regions hit hard by previous industrial closures.
How Does Carbon Capture and Storage Work?
Carbon capture, utilisation, and storage (CCUS) involves capturing carbon dioxide emissions from industrial plants, transporting the gas through pipelines, and storing it deep underground in depleted oil or gas fields. It’s seen as a vital technology in reducing emissions from sectors that are difficult to decarbonize, such as cement and steel production.
While the technology has long been touted as a game-changer in the fight against climate change, progress has been slow. Globally, only 45 commercial CCUS plants are currently in operation. However, the UK hopes its investment will spur rapid development and lay the foundations for a larger network of carbon capture sites across the country.
Concerns from Environmental Groups
Despite the optimism from government and industry leaders, some environmental groups have raised concerns about how CCUS technology will be implemented. Critics warn that the expensive technology could be used as a way to prolong the use of fossil fuels, particularly if it’s applied to blue hydrogen production. Blue hydrogen is produced from natural gas, a fossil fuel, and requires ongoing imports, potentially locking the UK into reliance on non-renewable energy sources.
Greenpeace UK’s Doug Parr cautioned against the overuse of CCUS for projects that could otherwise transition to greener alternatives. “There’s a risk of locking ourselves into second-rate solutions,” Parr said, suggesting that the oil industry could use the funding to maintain business as usual under the guise of going green.
A Mixed Bag of Reactions
Unions and industry representatives, however, have welcomed the announcement. GMB general secretary Gary Smith said it would “reinvigorate communities” by providing well-paid jobs and supporting the transition to a green economy. This news comes at a crucial time for the UK’s industrial workforce, as recent closures like the Port Talbot Steelworks have left thousands out of work.
Meanwhile, James Richardson, acting chief executive of the Climate Change Committee (CCC), expressed reassurance that CCUS would play a key role in meeting the UK’s climate targets. He acknowledged that it is one of the few technologies available to tackle emissions in hard-to-decarbonize sectors.
The Road Ahead
The government’s plan to commit £21.7bn to CCUS technology over the next 25 years comes as part of a wider strategy to meet its net zero emissions target by 2050. Though the scale of the funding is significant, it will support fewer projects than initially hoped. The previous government had suggested a £20bn investment pot for similar initiatives, but the new administration insists those plans were not properly costed.
The funding is set to come from a mix of public funds and energy bills, though the exact details of the split have yet to be revealed. Despite these uncertainties, the government remains confident that the announcement will unlock billions in private investment and cement the UK’s position as a leader in the global green economy.
The Future of Carbon Capture
With 700 CCUS projects now in various stages of development globally, the UK is positioning itself as a major player in the carbon capture revolution. The government hopes that its initial investment in the Merseyside and Teesside clusters will lay the groundwork for further CCUS developments in the coming years, helping the nation move closer to its ambitious net zero goals.
While challenges remain, particularly around cost and implementation, this latest funding pledge signals a strong commitment to tackling climate change through innovative technologies. Whether it will be enough to shift the UK’s industrial heartlands towards a more sustainable future remains to be seen.
