The UK government has announced a nearly £22 billion investment in carbon capture and storage (CCS) projects, aimed at reducing industrial carbon emissions and supporting the country’s climate goals. This funding will be allocated over the next 25 years to two major carbon capture clusters located in Merseyside and Teesside. The projects promise to create thousands of jobs, attract billions in private investment, and help the UK cut down on harmful CO2 emissions.
During a visit to the North West on Friday, Sir Keir Starmer, alongside Chancellor Rachel Reeves and Energy Secretary Ed Miliband, will officially confirm the funding. Starmer highlighted the initiative’s potential to “reignite our industrial heartlands” and “kickstart growth” in regions like Teesside.
The plan aims to develop the infrastructure necessary to transport and store carbon, with two networks set to carry captured CO2 to deep geological storage sites beneath Liverpool Bay and the North Sea. Once operational by 2028, these projects are expected to remove 8.5 million tonnes of carbon emissions annually, creating 4,000 direct jobs and supporting 50,000 long-term roles.
Emma Pinchbeck, CEO of Energy UK, described CCS as a “game-changing” technology essential for decarbonizing sectors that cannot currently transition to clean electricity. However, not everyone is convinced. Critics, including Greenpeace UK’s Doug Parr, argue the investment may extend the lifespan of the oil and gas industry rather than push for alternative solutions like offshore wind and home insulation.
Despite criticism, the International Energy Agency and the Climate Change Committee consider carbon capture crucial for meeting global climate targets. Labour’s commitment marks a significant push to boost the UK’s clean energy sector, with expectations that the investment will spark growth in the country’s industrial hubs and attract up to £8 billion in private sector funding.
The projects are part of a broader plan, targeting the capture of 20-30 million tonnes of CO2 annually by 2030.