The plans are
designed to generate private investment and jobs in Merseyside and Teesside,
two industry-heavy areas that will be home to the new "carbon capture
clusters".
Prime Minister Sir Keir Starmer said the move was
"reigniting our industrial heartlands by investing in the industry of the
future", though there are questions about how best to use this expensive
technology.
Carbon capture,
utilisation and storage (CCUS) has been developed to combat climate change. It
captures the planet-warming carbon dioxide released from burning fossil fuels
or from heavy industry, and puts it to use or stores it underground.
It is expensive and difficult, but the UK's climate advisers, the
Climate Change Committee (CCC), and United Nations scientists say it is
essential to get the world to net zero, which the UK is targeting for 2050
Net zero means
cutting emissions as much as possible and offsetting or capturing the stubborn
remaining ones.
Today the
government has committed up to £21.7bn over 25 years, to be given in subsidies
to sites in the Teesside and Merseyside "clusters" - from 2028.
Sir Keir said the
announcement will "give industry the certainty it needs" and
"help deliver jobs, kickstart growth, and repair this country once and for
all".
It hopes to fund
the first large scale hydrogen production plant in the UK, and help the oil and
gas sector and its transferable skills move over to green industries.
It has been welcomed by industry and the unions,
coming just a week after job losses from the closures of Port Talbot
Steelworks and Ratcliffe coal power station.
GMB general
secretary Gary Smith said the news "shows what levelling up can really
mean: good, well paid jobs reinvigorating communities".
CCUS has made slow
progress: promised for decades but barely scaled, with just 45 commercial sites
globally. However, it began to pick up
in the last few years, with 700 plants now in some stage of development around
the world.
The world's first CCUS
plant has stored CO2 under Norway's waters since 1996, though elsewhere a few
concerns linger about whether some projects leak gas.
James Richardson, acting chief executive of the CCC, said: "We
can't hit the country's targets without CCUS, so this commitment to it is very
reassuring".
Some believe expensive
CCUS should be preserved for areas like cement or lime-production, that are
very hard to clean up in any other way, rather than for sectors for which there
are greener alternatives.
Greenpeace UK's Doug
Parr warned of a "risk of locking ourselves into second-rate
solutions". The government hopes
this funding for the three sites that are ready to go will lay the foundations
for further CCUS projects.