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UK Commits to £21.7 Billion to Advance Carbon Capture Projects, Aiming to Become a Global Leader in CCUS and Hydrogen
5th October 2024
On 4 October, the UK government announced £21.7 billion of funding for carbon capture projects located in the East Coast Cluster and the HyNet cluster, marking a crucial step forward in the development of these large-scale CCUS clusters.
With this move, the UK confirms once again its commitment to advance CCUS and low carbon hydrogen solutions in the country, and play a leading role in these sectors, considered vital to decarbonise the country’s industrial heartland and accelerate the UK transition towards net-zero.
The funding to be allocated over 25 years between projects located in Teesside and Merseyside, intends to support new carbon capture and CCUS enabled hydrogen projects with the combined capacity to curb over 8.5 mtpa of CO2, and the potential to create 4,000 new jobs and support key British industries. The funding is also expected to attract about £8bn of private investment into the projects.
The announcement is in line with the UK’s ambition to store 20 to 30 million tons of CO2 per year by 2030 by using carbon capture and storage technology. The move also builds on the forward-looking vision for CCUS beyond 2030, unveiled by the government in December 2023 to chart a course for the sector's evolution, moving from early government-supported initiatives to establishing a competitive and self-sufficient market by 2035.
Read more about the funding announcement here