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Latest News

Government Unveils £21.7 Billion Funding for Carbon Capture

7th October 2024

The UK government has announced a significant commercial agreement with the clean energy sector to kickstart funding for carbon capture initiatives. This ambitious plan will see two designated carbon capture sites established in Teesside and Merseyside. The government projects that these initiatives will generate around 4,000 new jobs and attract £8 billion in private investment, all while propelling the UK closer to its target of achieving net-zero emissions by 2050.

A Major Step Towards Emission Reduction

The newly approved carbon capture and hydrogen projects, which utilise Carbon Capture Utilisation and Storage (CCUS) technology, are expected to eliminate over 8.5 million tonnes of carbon emissions annually. Labour leader Keir Starmer commented, “Today’s announcement confirms that up to £21.7 billion will be allocated over the next 25 years to position the UK as a frontrunner in two expanding global markets: CCUS and hydrogen. This funding is set to be distributed between the two clusters.”

Starmer highlighted that the UK’s commitment to carbon capture dates back to 2009, and today’s funding announcement marks a significant achievement for British industry. He stated, “The UK has the capacity to store emissions for the next 200 years, making CCUS a groundbreaking solution in the fight against the climate crisis and essential for helping industries reduce their carbon footprint.”

Reassuring Commitment for Investors

James Richardson, the acting chief executive of the Climate Change Committee, expressed enthusiasm for the funding, stating, “It’s fantastic to see investment coming through for these substantial projects. Achieving the UK’s climate targets relies heavily on CCUS, so this commitment is incredibly reassuring. It will undoubtedly instil confidence in investors and businesses regarding the nation’s future direction.”

He also emphasised the potential benefits for local communities, noting, “These projects are set to provide stable, reliable employment in areas that truly need it. Ensuring that prosperity for these regions is integrated into a sustainable energy future is of utmost importance.”

This funding announcement marks a pivotal moment in the UK’s journey towards a cleaner, greener economy, and the government is optimistic about the transformative effects these projects will have on the environment and the economy alike.

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