Net Zero Teesside has been named the UK’s leading carbon capture scheme by the Government – putting it in line for a slice of £1bn cash.
The project is part of the East Coast Cluster, which aims to remove nearly 50% of all UK industrial CO2 emissions by 2040.
The Government cash will unlock a further £220m in development funding from the project’s privately-backed consortium, which includes bp and other global players.
The East Coast Cluster brings together a similar scheme, Zero Carbon Humber, and CO2 transportation and storage company Northern Endurance Partnership (NEP).
They will share the £1bn funding with another frontrunner – HyNet, in the North West.
Energy Minister Greg Hands confirmed it was a “Track One” bid – putting it on course to be deployed by the mid-2020s.
The project will now enter negotiations, with viability checks ahead of pulling in support from the £1bn fund.
The announcement has been branded a “significant milestone” in the UK’s journey to net zero emissions by 2050, with one Teesside Labour MP claiming it’s a “real opportunity to show that Ministers are serious about decarbonisation”.
Net Zero Teesside will capture 10m tonnes of carbon from the area’s chemical and processing industry and stop it polluting the atmosphere by storing it beneath the North Sea.
It’s set to create up to 6,000 jobs and safeguard thousands of existing jobs on Teesside.
It’s estimated the project will “create and support” an average of 25,000 jobs a year across the whole cluster between 2023 and 2050, with around 41,000 jobs at the project’s peak in 2026.
The skilled roles will be in “exciting new industries, including industrial carbon capture, low-carbon hydrogen production, negative emissions power, and power with carbon capture”.
“The project will create thousands of jobs and put Teesside at the forefront of the new green industrial revolution,” he added.
“This announcement now means we can move on to finalise negotiations so that Net Zero Teesside can start its £220m Front End Engineering and Design.”
“There is great potential for creating and safeguarding thousands of well-paid jobs and it is also a fantastic opportunity to transform and develop the many world-leading businesses we have and take a huge stride towards our ambitions to become carbon-neutral.”
“Deploying CCUS will be a significant undertaking, these are new major infrastructure projects for a new sector of the economy and carry with them significant risks to deliver by the mid-2020s.
“Government will continue to play a role in providing long-term certainty to these projects to manage these risks and bring forward the UK’s first CCUS clusters.
“We remain committed to helping all industrial clusters to decarbonise as we work to reach net zero emissions by 2050, and we are clear that CCUS will continue to play a key role in this process.
“Consequently, the government continues to be committed to Track Two enabling 10Mtpa capacity operational by 2030.
“This puts these places – Teesside, the Humber, Merseyside, North Wales and the North East of Scotland – among the potential early SuperPlaces which will be transformed over the next decade.”
National Grid Ventures will provide vital connecting infrastructure, with a project tipped to employ a further 16,000 people at peak in 2026.
NEP will deliver the onshore and offshore infrastructure needed to capture carbon from the cluster.
“Today is a significant milestone on our country’s journey to net zero emissions by 2050. “We are delighted that the East Coast Cluster has been selected and we will look forward to delivering our project, removing up to 50 per cent of the UK’s industrial cluster CO2 emissions, creating tens of thousands of jobs and establishing the UK as a leader in the energy transition.”
“The East Coast Cluster can play a critical role in the UK Government’s levelling up ambition, supporting thousands of jobs and investing in local communities.
“Teesside and the Humber were once the industrial heart of the UK.
“Today’s announcement paves the way for them to become the green heart of the country’s energy transition, shepherding in the next generation of industry and ways of working.”
“We are incredibly proud to be part of a project that is going to have such a positive impact on the people of the Humber and Teesside.
“The East Coast Cluster will help to revitalise one of the UK’s most important industrial heartlands, creating tens of thousands of jobs for decades to come.
“It will also build a solid foundation to establish the Humber and Teesside, as well as the UK, as a globally-competitive climate-friendly hub for industry and innovation.”
“As we mark and celebrate this major step, we look forward to continuing working closely with our partners, local communities, businesses, industry, and academia to deliver this ambitious and world-leading project that will play a major role in levelling up across the country.”
“This is absolutely fantastic news for our clean energy revolution.
“I’m very proud that Teesside will sit at the heart of the UK’s first carbon capture, utilisation and storage project.
“During the first industrial revolution, our region led the world.
“Now, at the dawn of the Green Industrial Revolution, once again it’s Teesside that leads the way.”
“I’m absolutely buzzing that Net Zero Teesside has been backed by government, putting it on course for development by the end of this decade.
“I mentioned this project in my maiden speech over 18 months ago, and so I’m really pleased to see it get the go ahead.
“This has the phenomenal potential to create tens of thousands of jobs across Teesside and Hunberside over the next few years – but for me this isn’t just about creating new jobs in our area but also protecting the jobs that already exist in our industry.
“Through this project, the worlds first industrial scale carbon capture and storage project, we will show the country and the world how to safely remove carbon emissions industry.
“Teesside is once again leading way on our green industrial revolution, creating a safer, cleaner and healthier future for us all.”
“I am delighted that Teesside has been chosen as the location for the pioneering Carbon Capture Utilisation and Storage development.
“This is a gamechanger for tackling industrial carbon emissions and will attract other players to our region.
“Together with my colleague Alex Cunningham, I have long since championed the case for Teesside as being the ideal location for such a major initiative which has the potential to create significant numbers of high skilled, well paid and secure jobs as well making a huge contribution in the UK’s response to the climate crisis.
“It’s imperative that all stakeholders work collaboratively to make this an unqualified success and maximise the opportunities to bring much needed prosperity to our Teesside Communities.”
“I’ve long campaigned for Teesside to be the home for the first CCUS clusters and set up the All-Party Parliamentary Group to promote this in Westminster and beyond,” he added, “and I’m delighted that the Government has now accepted that Teesside is the ideal place for such a project.
“This is a real opportunity to show that Ministers are serious about decarbonisation and the East Coast Cluster will make huge inroads in cutting emissions.
“There is also a huge economic impact from this announcement and the construction of the site, production of steel and manufacturing opportunities – as well as the long-term operational roles – have the potential to great hundreds of well paid, good quality jobs here on Teesside.
“I will continue to champion the need to make sure local people benefit from these jobs and opportunities and work with the industry and trade unions to ensure this happens.”