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UK says goodbye, 150 years of coal – hello, carbon capture and hydrogen

04 October 2024

The UK has become the first industrialised nation to end its 150-year coal usage as the Government announces major new investment in clean energy projects, including the first carbon capture sites.

Image: Shutterstock
Image: Shutterstock

The Government has confirmed funding to launch the UK's first carbon capture sites, set to bring thousands of new skilled jobs, billions in private investment and support acceleration to net zero.

Major funding for two carbon capture sites will inject growth into the industrial heartlands of the North West and North East of England – directly creating 4,000 jobs and supporting 50,000 jobs in the long term while powering up the rest of the country. 

CCUS technology removes CO2 before it reaches the atmosphere and stores it safely beneath the seabed – using tried and tested technology that has been deployed across the globe for over 20 years.

In a boost for economic growth and protecting the environment, the new carbon capture and CCUS-enabled hydrogen projects will create 4,000 new jobs, sustain important British industry, and help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around four million cars off the road.

Prime Minister Keir Starmer, the Chancellor Rachel Reeves, and Energy Secretary Ed Miliband visited the North West to confirm the funding for 2 sites in Teesside and Merseyside, which are expected to bring in £8 billion of private investment into these communities.

These projects aim to help the UK become a global leader in CCUS and hydrogen – delivering good jobs and turbocharged growth for decades to come,

Up to £21.7 billion of funding is available, over 25 years, to make the UK an early leader in two growing global sectors, CCUS and hydrogen, to be allocated between these two clusters. 

The UK’s commitment was first made in 2009, and in the week in which Britain became the first industrialised nation to end its 150-year usage of coal to produce power, the nation now begins a new era of clean energy technology. 

The Government said that the UK has enough capacity to store 200 years’ worth of emissions – making CCUS a “revolutionary” method in tackling the climate crisis and helping industry to decarbonise.

Energy Secretary Ed Miliband commented: “On Monday, 150 years of coal in this country came to an end. Today, a new era begins.

“By securing this funding, we pave the way for securing the clean energy revolution that will rebuild Britain’s industrial heartlands.”

This announcement will also help turbocharge the low-carbon hydrogen sector by paving the way for the UK’s first large-scale hydrogen production plant, decarbonising vital industrial sectors.

“This is a vital step forward, catapulting hydrogen towards long-term certainty we need in the UK,” Celia Greaves, CEO of the Hydrogen Energy Association, said.

“Supporting hydrogen at scale in two of the biggest UK industrial clusters is the Government giving hydrogen another green light as a key component of its green energy ambitions. 

“What’s more, it will inject further enthusiasm for wider investment to power up business confidence, which will have a knock-on effect of continuing to position the UK as a global player in hydrogen technology and innovation.”

The announcement also marks a potentially game-changing development in the mission to tackle climate change – protecting the environment from harmful emissions at a time when the UK has seen a year of record-breaking temperatures. 

It follows advice from the independent Climate Change Committee, which described CCUS as critical for decarbonising the UK’s heavy industry and a “necessity” for the UK to reach its legally binding target for net zero emissions by 2050.

Similarly, the International Energy Agency and the Intergovernmental Panel on Climate Change have endorsed CCUS as a critical tool in decarbonisation, particularly in heavy industry such as cement and steel.

The carbon capture, usage and storage industry is expected to support 50,000 skilled jobs as the sector matures in the 2030s, helping to support the oil and gas sector’s transition away from high-emission fossil fuels by using the transferable expertise of their workforce. 

An up-and-running carbon capture industry is expected to add around £5 billion per year to the UK economy by 2050 and the backing of these 2 sites sends a clear signal to investors that the UK is open for business.

As part of the partnership with GB Energy and The Crown Estate, the progress on Track-1 comes as The Crown Estate awarded an Agreement for Lease to Eni to repurpose existing infrastructure to transport and store CO2, reducing cost and environmental impact. 

 “Gas-fired power plants provide flexibility, resilience and energy security, but are a major source of greenhouse gases.  The installation of carbon capture and storage substantially reduces their carbon emissions,” commented Dr Robert Sansom, a member of the IET’s Sustainability and Net Zero Policy Centre.

“We are not going to be able to stop using fossil fuels overnight, so it’s important that the UK has a fossil fuel strategy on how we manage their use going forward and which supports the transition to net zero. 

“Additionally, at present there remains ‘hard to decarbonise sectors’ of the UK’s economy, which will mean negative emission technology such as Bio-Energy with CCS (BECCS) and Direct Air CCS (DACCS) will need to be developed.”

Rain Newton-Smith, CEO of the Confederation of British Industry (CBI), concluded: “Green growth can undoubtedly be the engine that powers the UK’s economy for decades to come and this moment represents a critical milestone as we create and shape the markets of the future.


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