Thousands of jobs could be created across Derbyshire, Staffordshire and the North West thanks to a £28.6m National Wealth Fund investment in a major carbon capture project.
This funding for the flagship Peak Cluster project marks the first step towards developing a leading carbon capture pipeline between cement and lime companies in the Peak District, which will store emissions deep below the Irish Sea.
The Peak Cluster project is the world’s largest cement decarbonisation project –preventing over 3 million tonnes of CO2 from entering the atmosphere every year and providing a secure domestic supply of cement and lime products that the British construction and manufacturing sectors rely on.
Backed by £31m from private partners including Holcim, Tarmac, Breedon, SigmaRoc, Summit Energy Evolution and Progressive Energy, together with the Morecambe Net Zero project, could create and secure 13,000 jobs in the Midlands and North West.
Decarbonising the cement and lime sectors
This will be the National Wealth Fund’s first investment in carbon capture since the Chancellor highlighted it as a priority in March.
Cement and lime are two of the most challenging industrial sectors to decarbonise due to the high levels of CO2 emissions generated in the manufacturing process, which cannot be reduced by transitioning to low-carbon fuels.
By investing alongside the industry, supporting early development risk reduction, and providing critical financing for Peak Cluster throughout its development process, the National Wealth Fund will remove some of the barriers to private investment, enabling further development and construction of the project.
John Egan, CEO of Peak Cluster Ltd, said: “Peak Cluster is focused on securing a sustainable future for the cement and lime industry. Together with MNZ, the UK’s largest carbon store, we will capture, transport, and store CO₂ to support industry in thriving in a low-carbon future.”
Through its support for Peak Cluster, it is also building the market and stimulating large-scale future investments as the project progresses, and facilitating Spirit Energy’s development of the UK’s largest CO2 store, for which a carbon capture pipeline is essential.
Huge steps towards decarbonisation with the National Wealth Fund
The National Wealth Fund will commit at least £5.8bn by 2030 to hydrogen, carbon capture, ports and supply chains, gigafactories, and EV supply chains, as well as steel. This will help industries decarbonise and accelerate Britain’s transformation into a clean energy superpower.
“The National Wealth Fund is a force for growth, investing £3bn into the British economy and securing 12,500 jobs,” said Chancellor of the Exchequer Rachel Reeves.
“We’re modernising the cement and lime industry, delivering vital carbon capture infrastructure and creating jobs across Derbyshire, Staffordshire and the North West to put more money into working people’s pockets.”
Energy Secretary Ed Miliband added: “This landmark investment will catalyse our carbon capture sector to deliver thousands of highly skilled jobs and growth across our industrial heartlands.”
