The UK government has committed up to £21.7 billion ($28.5 billion) over the next 25 years to develop carbon capture and storage (CCS) projects, aimed at reducing emissions from industry and boosting job creation in northern England.
Chancellor Rachel Reeves highlighted the dual benefits of the investment, stating, “Carbon capture technology is not just about cleaning up our industry and our energy sector. It is a massive opportunity to attract investment and create thousands of skilled jobs.”
The government expects the initiative to bring in £8 billion in private investment and create 4,000 jobs in communities hosting the projects. Two sites in northern England will have a combined annual carbon capture capacity of 8.5 million metric tons, equivalent to taking 4 million cars off the road.
The HyNet North West project, led by Italian energy firm Eni, plans to capture emissions from industrial plants and store them in depleted gas fields in the Irish Sea. Eni CEO Claudio Descalzi noted, “HyNet… will decarbonise one of the key energy-intensive industrial districts as well as unlock significant economic growth in this region of the UK.” Another project in Teesside, involving oil and gas giants Equinor and BP, will store emissions under the North Sea.
However, the decision has faced criticism from environmental groups. Greenpeace UK’s policy director Doug Parr said, “For a government that is committed to tackling the climate crisis, £22 billion is a lot of money to spend on something that is going to extend the life of planet-heating oil and gas production.”
The funding builds on a previous £20 billion CCS pledge from the UK’s former conservative government, which was never fully allocated. Despite its potential, CCS has faced challenges globally due to high costs and doubts over its effectiveness in significantly reducing carbon emissions.
Source: Reuters
