The National Wealth Fund has invested £28.6m into a carbon capture project based across Derbyshire, Staffordshire and the North West.
Announced by Chancellor Rachel Reeves on Monday, the UK’s sovereign wealth fund has approved the major investment into Peak Cluster, which aims to decarbonise the British cement and lime industries with CO2 capture technology.
“We’re modernising the cement and lime industry, delivering vital carbon capture infrastructure and creating jobs to put more money into working people’s pockets,” said Reeves.
Peak Cluster ultimately plans to develop a carbon capture pipeline between cement and lime companies in the Peak District, aiming to prevent over three million tonnes of CO2 from entering the atmosphere a year.
The project has also been backed by £31m from private investors, including Holcim, Tarmac, Breedon, SigmaRoc, Summit Energy Evolution and Progressive Energy.
“This landmark investment will catalyse our carbon capture sector to deliver thousands of highly skilled jobs and growth across our industrial heartlands,” said Energy Secretary Ed Miliband.
“Workers in the North Sea and Britain’s manufacturing heartlands will drive forward the country’s industrial renewal, positioning them at the forefront of the UK’s clean energy transition.”
Carbon capture, a technological process involving absorbing and storing emissions from the atmosphere around carbon-intensive operations, is seen by the government as both essential to net-zero ambitions and a potentially lucrative industry.
In last year’s Autumn Statement, Reeves announced the government would be putting billions into green technologies, with hydrogen power and carbon capture being designated as primary recipients for funding.
Monday’s announcement marks the first investment from the National Wealth Fund in a carbon capture project since the initial strategic decision to back the technology.
“Substantial private investment, deployed at risk, will be needed to develop and deliver carbon capture projects across the UK,” added National Wealth Fund chief executive John Flint.
“Our involvement demonstrates how we can use our risk capital to solve problems and manage investment uncertainty, amplifying government policy and ultimately removing the barriers for private investors to support this project.”
Read more: The UK is an ‘ideal’ market for carbon removal tech
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