Immingham can be 'vital' to UK's clean energy future, says minister on visit to VPI site
Immingham can play a “vital role” in efforts to decarbonise the UK, Energy Minister Michael Shanks has said as he visited a major local business plotting a £1.5bn carbon capture investment.
Mr Shanks recently went to VPI’s Immingham Combined Heat and Power Plant in North Lincolnshire, meeting senior leaders and apprentices.
The facility supplies electricity and steam essential for key industrial processes - including refining, sustainable aviation fuel production and manufacturing materials used in battery development.
It is central to plans for the Viking carbon capture and storage project. The scheme intends to see captured carbon transported out to be stored under the North Sea, with the Government announcing last summer it would be providing development funding to help move it forward.
The overall cluster is projected to bring £13 billion of investment to the Humber region, support around 20,000 construction jobs at peak, and open new import revenue opportunities through carbon sequestration services via the Port of Immingham, situated next door to VPI.
A VPI spokesperson said: “Through its Humber Zero programme, VPI plans to decarbonise operations by retrofitting carbon capture technology onto two of the plant’s three generating units. Once operational, the project is expected to capture up to 3.3 million tonnes of CO₂ each year, providing the scale required to make the Viking CCS transport and storage network commercially viable.
“Delivering the carbon capture plant would represent an investment of more than £1.5 billion by VPI, creating around 1,500 jobs during peak construction and numerous high value permanent roles once in operation. The project has completed front end engineering and design, secured the UK’s first environmental permit for post combustion capture technology, and received planning consent.”
Mr Shanks said: “This government is delivering first of a kind carbon capture projects in the UK, backed by £9.4 billion over this parliament – supporting thousands of jobs across the country and reigniting our industrial heartlands.
“Immingham has the potential to play a vital role in Britain’s clean energy future. It’s clear from discussions with industry leaders and apprentices in North Lincolnshire that this community is passionate about building good, skilled local jobs through clean, homegrown energy.”
Jorge Pikunic, Chief Executive of VPI, said: “Our Immingham site has long been central to the Humber’s industrial story. It is home to one of Europe’s largest combined heat and power plants, alongside two new peaking plants. Through Humber Zero, our carbon capture and storage project, it now has the potential to be among the first sites delivering low‑carbon, dispatchable power and steam, as one of the initial users of the Viking CCS transport and storage network.
“We welcome the Minister’s recognition of the vital role sites like Immingham play in strengthening the UK’s energy security, creating a credible pathway to low‑carbon power, and unlocking new opportunities for growth and jobs across the region.”
Graeme Davies, Executive Vice President for CCS, Harbour Energy: “Viking CCS has the potential to transform the Humber into a world leading net zero industrial region, while supporting jobs and long-term economic growth. We welcome Minister Shanks’ visit to see the role our cluster partners are playing firsthand to unlock investment and we look forward to continuing our collaborative work to progress the project.”