AUS
NZ
UK
CA
USA
IND
Highlights:
- The UK government will invest £22 billion in carbon capture projects to cut industrial emissions.
- Major energy companies like BP and Equinor are involved in two key CCS clusters: HyNet and the East Coast Cluster.
- Environmentalists warn the plan may prolong fossil fuel reliance and call for investment in greener industries like offshore wind.
The UK government is set to announce a £22 billion investment into the carbon capture and storage (CCS) sector, focusing on two major carbon capture clusters: the HyNet scheme in the northwest and the East Coast Cluster, which includes industrial hubs around Teesside and the Humber. This long-term commitment, spanning 25 years, aims to reduce carbon emissions from factories and power plants by capturing and storing emissions in depleted subsea oil and gas reserves.
The funding will form part of the UK’s efforts to capture between 20 and 30 million tonnes of carbon dioxide annually by 2030, a small but significant step toward lowering the country’s overall emissions of 384.2 million tonnes last year. Major energy firms like BP (LSE:BP.), Equinor, TotalEnergies SE (NYSE:TOT), and Italy's Eni are already involved in these projects, which represent the UK’s leading initiatives in the CCS space.
While the government’s plan has garnered support from industry leaders, environmental groups like Greenpeace UK have raised concerns. Doug Parr, Greenpeace UK’s policy director, criticized the initiative, arguing that investing in CCS for oil and gas production could extend the life of fossil fuel industries instead of focusing on future-proof green solutions like offshore wind or home insulation. Parr stressed the need for a more strategic allocation of resources to create long-term, sustainable jobs.
