The UK’s recently established National Wealth Fund is investing in a carbon capture and storage project aimed at decarbonising the country’s cement and lime industry.
The National Wealth Fund, which superseded the UK Infrastructure Bank, is providing close to half of a £59.6m equity investment in Peak Cluster, a project designed to capture, transport and store CO2 from cement and lime production processes in England.
The project forms part of a plan to develop a carbon capture pipeline between cement and lime companies in the Peak District which will store emissions deep below the Irish Sea.
The National Wealth Fund is providing £28.6m of the equity alongside private-sector investors Holcim, Tarmac, Breedon, SigmaRoc, Summit Energy Evolution and Progressive Energy.
Peak Cluster is the world’s largest cement decarbonisation project and is designed to prevent over 3m tonnes of CO2 entering the atmosphere every year. It is being undertaken with Morecambe Net Zero (MNZ), the UK’s largest carbon store.
It marks the National Wealth Fund’s first investment in carbon capture since the government highlighted it as a priority. The fund plans to commit at least £5.8bn by 2030 in hydrogen, carbon capture, ports and supply chains, gigafactories and electric-vehicle supply chains and steel.
Chancellor of the Exchequer Rachel Reeves said: “The National Wealth Fund is a force for growth, investing £3bn into the British economy and securing 12,500 jobs. 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.”
Ed Miliband, UK energy secretary, said: “This landmark investment will catalyse our carbon-capture sector to deliver thousands of highly skilled jobs and growth across our industrial heartlands, as part of our plan for change.
“Workers in the North Sea and Britain’s manufacturing heartlands will drive forward the country’s industrial renewal, positioning them at the forefront of the UK’s clean energy transition.”
John Flint, CEO of the National Wealth Fund, said: “Substantial private investment, deployed at risk, will be needed to develop and deliver carbon capture projects across the UK.
“Through its investments, the [National Wealth Fund] is well placed to support this. Capital must be committed now, especially in hard-to-abate sectors such as cement and lime, to ensure a pipeline of projects is ready for deployment and the UK is able to meet its ambitious carbon-capture targets.”
John Egan, CEO of Peak Cluster, said: “Peak Cluster is focused on securing a sustainable future for the cement and lime industry. Together with MNZ, the UK’s biggest carbon store, we will capture, transport and store CO2 to support industry to thrive in a low-carbon future.
“Through the National Wealth Fund, government will support the development of essential infrastructure to secure good jobs with good wages, produce sought-after low-carbon products here in Britain, grow the UK’s supply chain and skills base, secure private investment and lead the global low-carbon technology sector.”
Source of equity investment | Amount (£m) | Details |
---|---|---|
National Wealth Fund | 28.6 | UK government’s principal investor |
Private partners (joint venture) | 31 | Joint venture between: Summit Energy Evolution Ltd (part of Sumitomo Corporation), Progressive Energy Peak and cement and lime producers Tarmac, Breedon, Holcim and SigmaRoc |
Total equity investment | 59.6 |
To read the latest IPE Real Assets magazine click here.