Marvin OnumonuThe National Wealth Fund has invested £28.6m in the Peak Cluster carbon capture scheme, aiming to support around 3,500 jobs across Derbyshire, Staffordshire and the North West.
The plan is to help decarbonise the cement and lime industry and build a carbon capture pipeline between companies in the Peak District, with emissions stored under the Irish Sea.
The project is set to prevent over three million tonnes of CO2 emissions each year and provide a secure supply of cement and lime to the UK’s construction and manufacturing sectors.
Private partners, including Holcim, Tarmac, Breedon, SigmaRoc, Summit Energy Evolution and Progressive Energy, have put in £31m.
Together with the Morecambe Net Zero project, the investment could support or create up to 13,000 jobs in the Midlands and North West.
Chancellor Rachel Reeves said: “The National Wealth Fund is a force for growth, investing £3 billion 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.”
Energy Secretary Ed Miliband 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 NWF 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.
“The NWF has played a key role in structuring the transaction to crowd in private sector co-investment while taking early development risk to catalyse future investment.”
Flint added: “Our involvement demonstrates how we can use our risk capital to solve problems and manage investment uncertainty, amplifying government policy and ultimately removing the barriers for private investors to support this project post-FID.”
John Egan, CEO of Peak Cluster Ltd, 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.”
Egan added: “Peak Cluster, in partnership with MNZ, ticks every one of these boxes. We will work closely with Government to ensure that Peak Cluster and MNZ together can help secure the future of this foundation industry, creating a backbone of industrial opportunity that benefits communities across the Midlands and North West of England – for the UK and beyond.”
The £59.6m equity in Peak Cluster is split between the National Wealth Fund and private partners.
Over 2,000 existing jobs in the cement and lime industry will be supported, around 300 new jobs created at manufacturing sites and 1,200 temporary jobs for construction of the pipeline and capture facilities.
