UK government commits £22bn for carbon capture and storage projects

Posted on 7 Oct 2024 by James Devonshire

The UK government has announced £21.7bn in funding over 25 years to make the country’s first carbon capture and storage projects a reality.

The significant funding will be used to build two undersea carbon storage sites and pipelines in Teesside and Merseyside, directly creating 4,000 jobs and supporting 50,000 jobs in the long-term.

Carbon capture, usage and storage (CCUS) technology captures and removes CO2 emissions before they reach the atmosphere and stores them safely beneath the seabed. The two projects will help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around 4 million cars off the road.

As well as the investment from the government. the two carbon capture projects are expected to bring in £8bn of private investment into these communities.

The UK will be among the first industrialised nations to implement this game-changing CCUS technology, which will play a significant role in accelerating the country towards net zero in 2050.

Prime Minister Keir Starmer said: “We’re reigniting our industrial heartlands by investing in the industry of the future.

“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 groundbreaking technology – to help deliver jobs, kickstart growth, and repair this country once and for all”.

Speaking about the announcement, Maurits van Tol, Chief Executive, Johnson Matthey Catalyst Technologies, said: “Hydrogen will be pivotal in making the energy transition a reality and reaching net zero. This is a real statement of intent and is a huge opportunity for the UK to cut emissions, create quality jobs and become a global exporter of leading technologies.

“Decarbonising heavy industry has to be the starting point on this journey. The Government’s funding commitments to these clusters sends a strong signal to investors that they are serious in making the UK a clean energy superpower.

“This is a big step forward in accelerating the UK hydrogen economy and the Government should continue on its twin track approach in the development of both so-called blue and green hydrogen production”.

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