UK Government announces record funding for carbon capture
UK Government confirms funding to launch the UK's first carbon capture sites, set to bring thousands of new skilled jobs, billions in private investment and support acceleration to net zero.
The UK today (4th October) enters a new era for clean energy investment and jobs, as the government announces it has reached commercial agreement with industry, and funding to launch carbon capture in the UK.
Major funding for 2 carbon capture sites is set to inject growth into the industrial heartlands of the North West and North East of England – directly creating 4,000 jobs and supporting 50,000 jobs in the long-term while powering up the rest of the country.
Prime Minister Keir Starmer, the Chancellor Rachel Reeves, and Energy Secretary Ed Miliband are visiting the North West today to confirm the funding for 2 sites in Teesside and Merseyside, which are expected to bring in £8 billion of private investment into these communities.
The announcement confirms up to £21.7 billion of funding available, over 25 years, to make the UK an early leader in 2 growing global sectors, CCUS and hydrogen, to be allocated between these 2 clusters. It comes in the same week in which Britain became the first industrialised nation to end its 150-year usage of coal to produce power.
The International Energy Agency and the Intergovernmental Panel on Climate Change have endorsed CCUS as a critical tool in decarbonisation, particularly in heavy industry such as cement and steel.
Energy Secretary Ed Miliband said:
“On Monday, 150 years of coal in this country came to an end. Today, a new era begins.
By securing this funding, we pave the way for securing the clean energy revolution that will rebuild Britain’s industrial heartlands.”
Chancellor of the Exchequer Rachel Reeves, said:
“Working in partnership with business is at the heart of our plan to deliver strong growth and investment, so we can rebuild Britain and make everyone better off.
This announcement will also help turbocharge the low carbon hydrogen sector by paving the way for the UK’s first large-scale hydrogen production plant, decarbonising vital industrial sectors.
It also marks a game-changing development in the mission to tackle climate change – protecting the environment from harmful emissions at a time when the UK has seen a year of record-breaking temperatures. It follows advice from the independent Climate Change Committee, who described CCUS as critical for decarbonising the UK’s heavy industry and a “necessity” for the UK to reach its legally binding target for net zero emissions by 2050.”
Find out more here.
