HyNet welcomes £20 billion commitment from UK Governament

Mar 14 2023


Industrial leaders in the HyNet project from across the North West of England and North Wales welcome the Government’s pledged investment in the decarbonisation of industry.

HyNet, which is ready to start getting 'shovels in the ground' in 2024, will enable the decarbonisation of vital industries such as cement, refining, chemicals, glass manufacturing and Energy from Waste, as well as attracting investment in new industries such as Sustainable Aviation Fuel.

With the US and EU having recently announced substantial investment in CCS projects, these pledged funds will maintain confidence in the UK’s commitment to a net zero industrial future, demonstrating the UK is open to business. HyNet expects billions of pounds of private sector investment to be mobilised by this commitment.

Combined with the UK’s excellent natural resources, advanced policies and regulatory framework, this announcement enables large CCS projects to move into construction quickly, positioning the country as a global leader in this emerging sector. HyNet’s carbon capture and storage infrastructure will lock up carbon dioxide emissions from the hard-to-decarbonise industrial sector across the North West of England and North Wales.

In addition, it is poised to unlock over 1GW of low carbon hydrogen, enabling industry to switch away from high carbon fuels. Committed to this switch are leading industrial partners including Pepsico, Heinz, Kellogg’s, Encirc, Essar, Novelis, Tata Chemicals and Pilkington Glass. All are making investment plans to deliver first-of-a-kind low carbon plants in their sectors, creating the world’s first low carbon hydrogen industrial region.

Locally-produced low carbon hydrogen will also supply flexible power generation, currently delivered by gas-fired power stations, such as ESB-Carrington. This is an essential element in the UK’s transition to a net zero power system, as recently set out in the Committee on Climate Change’s Power Systems report last week, and one which HyNet, with its welladvanced hydrogen system is ready to make happen.

Unlocking low carbon growth across the UK’s traditional industrial heartlands is vital to maintain and attract regional investment as the world transitions to a net zero carbon economy. By the early 2030s, HyNet will reduce industrial carbon dioxide emissions by 10 million tonnes every year – the equivalent of taking four million cars off the road.

David Parkin, Project Director for HyNet said: “This announcement is very welcome. HyNet was selected as one of two ‘Track 1’ cluster projects in October 2021, and this announcement of financial support allows the project to move into construction in 2024. It has positioned the UK as a serious global player, and will allow a UK supply chain to be developed, creating new jobs across the country. This investment from Government is good for the UK’s fight against climate change, good for the North West and North Wales region, good for industry and good for the UK’s economy."

“The net zero transition provides the UK with a fantastic opportunity to protect and create highly skilled jobs, create a sustainable supply chain, and provide UK businesses with the ability to deliver the environmentally friendly products that consumers are increasingly demanding. The North West supports the most manufacturing jobs of any UK region. HyNet will enable the region to retain these high value manufacturing jobs, secure 6,000 new roles, attract inward investment and cultivate a supply chain across the region."

HyNet


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