Major investment in carbon capture on Merseyside and Teesside promises thousands of jobs, but green campaigners warn of risks to climate goals

The Labour government has unveiled a sweeping investment of almost £22 billion to fund carbon capture and storage (CCS) projects in the UK’s industrial regions. The initiative, which will see the creation of “carbon capture clusters” on Merseyside and Teesside, is designed to reduce harmful emissions from energy production, heavy industries, and hydrogen processing. Over the next 25 years, this funding aims to support infrastructure that will prevent millions of tonnes of CO2 from reaching the atmosphere.

Prime Minister Keir Starmer is scheduled to visit the North West alongside Chancellor Rachel Reeves and Energy Secretary Ed Miliband to formally announce the scheme. Speaking ahead of the visit, Starmer highlighted the potential of these projects to revitalise the UK’s industrial heartlands. “This initiative will reignite our industrial regions and create the conditions for sustained economic growth,” Starmer stated, framing the effort as a key component in Labour’s strategy to drive a green industrial revolution.

The nearly £22bn pledge will specifically support two main CCS clusters in Merseyside and Teesside. These hubs will capture carbon from local industries, transport it via pipelines, and store it deep beneath the North Sea and Liverpool Bay. The goal is to capture up to 8.5 million tonnes of CO2 annually, with operations expected to begin storing carbon as early as 2028.

The government’s plan is not without opposition. Environmental groups have voiced concerns that while carbon capture is a useful tool in reducing emissions, it risks being used as a way to extend the life of fossil fuel industries. Greenpeace UK’s policy director, Doug Parr, criticised the investment, suggesting that the funds would be better spent on expanding renewable energy or insulating homes. “£22 billion is a significant sum to funnel into a technology that ultimately benefits oil and gas,” Parr warned.

Friends of the Earth echoed these sentiments, calling for a greater focus on long-term sustainability measures like home insulation and energy efficiency. Critics argue that relying too heavily on carbon capture could delay the shift to cleaner, more sustainable energy sources like wind and solar.

Despite the criticism, Labour leaders remain optimistic about the benefits of CCS. Rachel Reeves, the Chancellor, called it “game-changing” technology. She pointed to the estimated creation of 4,000 direct jobs in the regions where the clusters will be developed, with an additional 50,000 jobs indirectly supported across the UK in the long term. The Chancellor emphasised that the government’s commitment to substantial state investment was a marked contrast to the previous administration’s approach, which, according to Reeves, failed to prioritise large-scale capital projects.

THE GUARDIAN

In a significant move towards environmental sustainability, Labour is set to invest nearly £22 billion over the next 25 years into carbon capture and storage (CCS) projects. This announcement, made by Chancellor Rachel Reeves, is expected to be one of the largest green spending initiatives of the current parliamentary session.

On a visit to the Liverpool city region, Reeves, alongside Prime Minister Keir Starmer and Energy Secretary Ed Miliband, will unveil plans to fund two major CCS clusters—one in Teesside, North East England, and another in North West England and North Wales. This investment aims to rejuvenate Britain’s struggling heavy industry and create thousands of jobs in the clean energy sector.

Reeves highlighted the importance of this commitment as part of a broader strategy to stimulate economic growth, calling it a “drumbeat” of measures leading up to the upcoming budget on 30 October. The government anticipates that this investment will attract an additional £8 billion from private energy firms like BP and Norway’s Equinor.

However, the announcement has not been without controversy. Environmental campaigners have expressed concerns that CCS technology might allow major energy companies to prolong the use of fossil fuels, thus undermining genuine efforts to combat climate change. Greenpeace warned that the government could be “locking itself into second-rate solutions” by investing in CCS rather than prioritising renewable energy sources.

The scepticism surrounding CCS stems from its reliance on fossil gas for producing “blue hydrogen,” which critics argue does not align with low-carbon objectives. Doug Parr, from Greenpeace UK, cautioned that this hefty investment could merely extend the life of planet-warming oil and gas production rather than facilitate the transition to sustainable energy.

While some experts see CCS as essential for hard-to-abate sectors, many believe the government’s approach echoes past mistakes, lacking a comprehensive reassessment of its CCS strategy. Dr. Andrew Boswell, an independent researcher in the CCS field, labelled the investment a “massive giveaway to the fossil fuel industry.”

As Labour steps forward with this ambitious plan, the challenge will be ensuring that it effectively paves the way for a greener future without compromising on climate commitments.

FINANCIAL TIMES

In a pivotal move for the emerging carbon capture and storage (CCS) sector, the UK government has announced a funding package of up to £21.7 billion to kickstart the country’s first CCS projects. This announcement, made by government ministers, aims to establish undersea carbon storage sites and pipelines with a combined capacity to store over 8.5 million tonnes of carbon dioxide annually.

The initiative focuses on two primary regions: Teesside and Merseyside. Additionally, it encompasses three industrial sites slated to incorporate carbon capture technology for hydrogen production, energy generation, and waste management. This funding is particularly crucial as the UK emitted approximately 384.2 million tonnes of carbon dioxide equivalent in 2023, highlighting the pressing need for innovative solutions.

While this announcement signifies a promising first step towards developing the CCS industry, it raises questions regarding the prospects of five other projects that had previously entered negotiations with the government. The lack of clarity surrounding support for additional sites in Scotland and the Humber region has led to concerns about the government’s long-term commitment to expanding the sector.

The government’s investment, which will be funded through a combination of energy bill levies and Treasury allocations, is expected to attract an additional £8 billion from private investors. Prime Minister Sir Keir Starmer emphasised the importance of this funding in “reigniting our industrial heartlands,” asserting that it would provide industries with the stability needed to thrive.

CCS technology involves capturing carbon dioxide emissions as they are produced, compressing the gas, and transporting it underground—often to depleted oil and gas reservoirs—to prevent it from entering the atmosphere. Although CCS is viewed as essential for achieving the UK’s legally binding net-zero emissions target by 2050, concerns remain about its commercial viability and technical scalability.

Historically, previous government efforts to support the CCS industry have faltered, with significant investments announced in 2011 and 2015 but never realised. Despite these setbacks, the current commitment marks a renewed determination to establish a robust CCS framework in the UK, reflecting an increasing urgency to address climate change and bolster the country’s green energy capabilities.

INDEPENDENT

Prime Minister Sir Keir Starmer has announced a £22 billion investment in carbon capture and storage (CCS) projects during a visit to Liverpool, aiming to revitalize the UK’s industrial heartlands. This funding is expected to directly create 4,000 jobs and support 50,000 more over the long term, focusing on two carbon capture clusters in Merseyside and Teesside. The initiative is designed to remove 8.5 million tonnes of carbon emissions annually, with the first carbon dioxide expected to be stored by 2028.

Starmer emphasized the importance of this investment in providing certainty to industries, criticizing the previous government’s handling of economic issues over the last 14 years. The funding will support CCS technologies that capture emissions from energy generation and hydrogen production, positioning the UK to meet its net-zero targets.

While businesses have welcomed the investment, environmental groups, such as Greenpeace, have raised concerns about the reliance on hydrogen derived from natural gas, cautioning against potential long-term commitments to fossil fuels. Chancellor Rachel Reeves described the announcement as “game-changing,” aiming to stimulate growth and attract billions in private investment while signalling a renewed commitment to the CCS sector amid past setbacks.