The National Wealth Fund (NWF) has backed the East Midlands as a leader in the green industrial revolution by announcing £28.6m for the Peak Cluster carbon capture project. The investment into Peak Cluster marks the NWF’s first carbon capture investment since the Chancellor highlighted it as a priority sector in March.
The £28.6m investment will unlock more than £30m of private sector investment from the project’s flagship joint venture partnership between Summit Energy Evolution Ltd and Progressive Energy Peak Ltd, as well as cement and lime producers: Tarmac, Breedon, Holcim, and SigmaRoc.
Peak Cluster will help to secure a long-term supply of low carbon cement and lime products. These materials are the foundation for many UK industries including construction and manufacturing. The cement and lime sectors are difficult to decarbonise due to the high levels of emissions generated in the manufacturing process that cannot be reduced by transitioning to low carbon energy sources. As Derbyshire and Staffordshire account for 40% of the country’s production of cement and lime, the Peak Cluster project is critical in decarbonising both the sectors and the region.
Once constructed, the Peak Cluster pipeline will capture and transport the carbon dioxide emissions captured at its industrial plants across Derbyshire and Staffordshire to be permanently stored in the depleted Morecambe gas fields off the west coast of the country.
Responding to the announcement, Mayor of the East Midlands, Claire Ward said: “The Peak Cluster in the East Midlands is doing globally significant work in the vanguard of Britain’s net zero transition. This investment is an endorsement of that work, ensuring that our region and country can continue to build, develop, and grow.
“This is the first carbon capture project that the National Wealth Fund has invested into – showing that the Peak Cluster – a collaboration led by industry – is trusted to get to this right.
“Crucially, this investment means jobs: 2,000 jobs protected, 1,500 jobs added. These jobs are high-value, high-skill, rooted in our region’s strengths, and will have long-term benefits for local people, businesses, and communities.
“The East Midlands powered Britain in the past and is now building its low-carbon future.”
Find out more about the world’s largest cement decarbonisation project on the Peak Cluster website.