£22bn boost for UK’s first carbon capture projects, including Flintshire pipeline

The UK government has announced up to £21.7 billion of funding to kickstart the country’s first carbon capture and storage (CCUS) projects, including the ambitious HyNet project, which will see a new pipeline run through Flintshire.

The HyNet project is being hailed as a once-in-a-generation opportunity to decarbonise industry and drive economic growth.

The initiative will help businesses switch from fossil fuels to low-carbon hydrogen, potentially preventing 10 million tonnes of carbon dioxide emissions per year by 2030.

According to HyNet consortium partners, this is the equivalent of taking four million cars off the road.

Hydrogen production will take place at the Vertex Hydrogen facility in Ellesmere Port, which is being converted from a crude oil refinery to produce low-carbon hydrogen.

The by-product CO2 will be stored in the depleted oil and gas fields of Liverpool Bay, managed by Eni UK.

Flintshire will play a crucial role, with Eni’s terminal being repurposed to pump CO2 into sandstone reservoirs.

The pipeline, which will stretch 60.4km from Cheshire to Flintshire, will incorporate both newly constructed sections and repurposed existing natural gas pipelines.

Around 36.4km of the pipeline will be newly built, running underground at depths between 2.5 and 6 metres, with the largest new build section stretching 32km from Stanlow to Flint.

The government has committed £21.7 billion over 25 years to make the UK an early leader in CCUS and hydrogen production, a significant step forward in the country’s mission to tackle climate change.

This announcement comes ahead of the International Investment Summit, where the UK will aim to attract global investors and bolster its clean energy sector.

Prime Minister Keir Starmer described the initiative as a major milestone in reigniting the UK’s industrial heartlands.

“Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology to help deliver jobs, kickstart growth, and repair this country once and for all,” he said.

Energy Secretary Ed Miliband added that this marks the beginning of a new era. “By securing this investment, we pave the way for the clean energy revolution that will rebuild Britain’s industrial heartlands,” he said.

“This funding is a testament to the power of an active government working in partnership with businesses to deliver good jobs for our communities.”

The carbon capture and hydrogen projects are expected to sustain 50,000 jobs in the long-term, providing the foundation for decarbonising industries such as steel and cement.

The projects will also help the UK meet its legally binding target for net zero emissions by 2050, a key recommendation from the independent Climate Change Committee.

With this major investment, the UK is set to become a global leader in CCUS technology, which has already been deployed globally for over 20 years.

The new technology removes CO2 before it reaches the atmosphere, storing it safely beneath the seabed.

As part of this new infrastructure, the partnership with GB Energy and The Crown Estate includes an Agreement for Lease awarded to Eni to repurpose existing infrastructure, reducing both costs and environmental impact.

Labour MS for North Wales, Carolyn Thomas has said that the carbon capture plans for North Wales, specifically the HyNet project, may be an expensive misstep.

Critics, like Ms Thomas, suggest the project could entrench fossil fuel reliance and pose environmental risks without delivering on its promises.

Concerns include safety hazards from CO2 transport and storage, lack of local benefits, and the potential for better, more sustainable alternatives being overlooked.

The project is seen as prioritising corporate profits over Welsh communities.