Government pledges £22bn for carbon capture and storage technology in 'new era' after coal plant closures
4 October 2024, 08:39
The Government has pledged nearly £22 billion to fund projects that capture carbon emissions from polluting plants and store them underground.
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It is hoped the funding for two "carbon capture clusters" in Merseyside and Teesside will create 4,000 jobs and draw in private investment to help the UK meet climate goals.
Carbon capture, utilisation and storage (CCUS) is a technology which captures the emissions from burning fuels for energy or from industrial processes such as cement production, and uses or transports them for storage permanently underground – for example, in disused oil fields under the sea.
Energy Secretary Ed Milliband told LBC's Nick Ferrari that the new projects hailed "a new era" after the UK saw the closure of its last operational coal power plant on Monday.
"Today we're launching a new era, a new industry: carbon capture and storage," he said.
"What that means is that for industrial processes like cement manufacture, glass, oil refineries, instead of the carbon dioxide going up into the air, it's buried and stored underground.
He said the projects were "about good jobs for Britain" and "making sure that as we decarbonise, we don't deindustrialise."
It is seen by the likes of the International Energy Agency (IEA) and the Climate Change Committee as a key element in meeting targets to cut the greenhouse gases driving dangerous climate change.
It is also a key component in "blue" hydrogen, made from natural gas with the carbon emissions captured and stored to make it "low-carbon", which can then be used as clean energy in power plants or industrial processes, although environmentalists warn blue hydrogen still requires a reliance on fossil fuels.
While it has long been championed as part of the solution – with Energy and Security and Net Zero Secretary Ed Miliband first announcing plans to develop carbon capture projects for power plants in 2009 during the last Labour government – and it uses well-tested technology, little progress has been made on it in the UK.
Funding of £21.7 billion is allocated over 25 years and focuses on subsidies to three projects in Teesside and Merseyside.
The funding will also support the two transport and storage networks which will carry the carbon captured to deep geological storage in Liverpool Bay and the North Sea.
The Government said the move would give industry confidence to invest in the UK, attracting £8 billion of private investment, directly creating 4,000 jobs and supporting 50,000 in the long term.
It will also help remove 8.5 million tonnes of carbon emissions each year, officials said, with the first carbon dioxide being stored from 2028.
It aims to pave the way for the first large scale hydrogen production plant in the UK and helping the oil and gas industry transition to clean energy with a workforce that has transferable skills.
The move has been welcomed by businesses involved in developing the two carbon capture clusters, which are focused on capture and storage of emissions from industrial, hydrogen and energy production.
Sir Keir Starmer said: "For the past 14 years, business has been second-guessing a dysfunctional government – which has set us back and caused an economic slump.
"Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this ground-breaking technology – to help deliver jobs, kickstart growth, and repair this country once and for all."
