Carbon storage project off North Wales moves into construction after UK deal finalised

A major carbon capture and storage project beneath the seabed off the North Wales coast has received the go-ahead for construction, following a financial agreement between energy company Eni and the UK Government.

The Liverpool Bay CCS (Carbon Capture and Storage) scheme, part of the HyNet industrial cluster, will transport carbon dioxide (CO₂) from industrial areas in North Wales and the North West—including through Flintshire—and store it deep underground in depleted gas fields beneath Liverpool Bay.

The project is now entering its construction phase after finalising a financial deal on Thursday (24 April).

It is expected to create over 2,000 jobs during its delivery and support many more across associated supply chains.

The carbon will be captured from energy-intensive industries such as hydrogen production, waste-to-energy, and cement manufacturing, then piped via a network that includes both new and repurposed infrastructure.

The pipeline system will involve the construction of a new underground CO₂ pipeline to transport captured emissions from industrial premises in the Ince and Stanlow area, including a new low-carbon hydrogen production plant.

From there, the pipeline will run south-west through Cheshire and into Flintshire, where it will connect with an existing natural gas pipeline near Flint.

This older pipeline, which will be repurposed to carry CO₂, runs from near Connah’s Quay Power Station, westwards through Flintshire to the Point of Ayr Gas Terminal in Talacre.

From the shoreline, it will continue beneath the sea to the depleted gas reservoir in Liverpool Bay where the CO₂ will be permanently stored.

The project forms part of a broader government initiative to invest £21.7 billion in clean energy infrastructure and support the growth of the UK’s carbon capture industry.

It also aligns with planning reforms designed to remove red tape and speed up approval for clean energy projects across the country.

Eni said the move into the construction phase marks a major milestone and reaffirms Britain’s leadership in developing large-scale carbon storage.

“The project will support the UK’s industrial competitiveness for the long term,” a spokesperson said, “by safeguarding existing industrial employment and creating new production chains and jobs.”

Construction is expected to begin shortly, with activity spanning Cheshire, Flintshire, and coastal areas near the Point of Ayr Terminal, where the CO₂ will be transferred offshore.

The HyNet cluster, once operational, will be one of the first low-carbon industrial clusters in the world.

Prime Minister Keir Starmer said:

“Our Plan for Change is working – we said we’d deliver jobs and growth through carbon capture technology, and now we have. Shovels ready for the ground, supporting over 2,000 new jobs and supporting thousands more, transforming the lives of hard-working people.”

Energy Secretary Ed Miliband said:

“Today we keep our promise to launch a whole new clean energy industry for our country, carbon capture and storage, to deliver thousands of highly skilled jobs and revitalise our industrial communities.

“We are making the UK energy secure and backing our engineers, electricians and welders so we can protect families and businesses and drive jobs through our Plan for Change.”

Welsh Secretary Jo Stevens said:

“This is a significant deal that will create thousands of jobs and confirm Wales’s place at the heart of the UK Labour Government’s mission to boost economic growth and ensure energy security.

“While Plaid Cymru, Reform and the Tories back the blockers, our Labour government will work with industry to get Britain building.”