Rachel Reeves urged to deliver on Humber carbon capture jobs promise - with £15bn at stake

Speaking at the Labour party conference in Liverpool last month, Ms Reeves said the new Government would make a “reality” of “jobs in carbon capture and storage on Teesside, Humberside and right here on Merseyside”.

Less than a fortnight later, the Chancellor and Prime Minister Keir Starmer announced almost £22bn worth of funding over 25 years for the creation of “carbon capture clusters” in Teesside and Merseyside along with 4,000 jobs but with no associated announcement for the Humber.

That decision followed the previous Conservative Government selecting Teesside and Merseyside as priority ‘Track One’ areas for carbon capture development while missing out the Humber.

A new report published today by the Humber Energy Board lays out a roadmap for decarbonising the industry-heavy region, which generates 20 per cent of the UK’s total electricity, creates one-third of the UK’s refinery products and is the location for the importation of around one-fifth of all gas into the country.

It calls for clarity “as soon as possible” on who will be included in future carbon capture priority schemes as well as speeding up the process for giving a green light for developing a proposed pipeline network to bury CO2 underneath the North Sea.

Richard Gwilliam, Chair of the Humber Energy Board, said: “Businesses across the Humber are ready to invest over £15bn in decarbonisation projects that will drive growth, protect energy security, create tens of thousands of jobs and slash our carbon emissions.

“In Delivering the Vision we set out the policy support needed to unlock this investment, including the creation of a regional CCS network, new hydrogen markets and power grid upgrades.

“Following recent support for Carbon Capture Utilisation and Storage in Teesside and the North West, we urge the Chancellor to listen to our recommendations and fulfil the promise of her party conference speech to make CCS jobs in the Humber a reality. This will ensure the region can continue to power Britain and help deliver the country’s carbon reduction targets.

“We believe the transformation and decarbonisation of the Humber is essential to delivering the economy of the future and the UK’s ambitious climate targets, but time is ticking. Unless there is urgent action from the UK Government, we could see businesses take their money elsewhere, prioritising investments overseas rather than in this key geography for UK energy security.”

Mr Gwilliam is also programme director for Drax Power Station’s carbon capture plans, which have been a source of ongoing controversy.

Drax, which creates power through the burning of wood pellets, says it is willing to invest £2bn in its scheme but last week the Conservatives dropped their previous support for its plans, which require Government support to become a reality.

Shadow energy secretary Claire Coutinho said that while in Government she faced “enormous pressure” from officials to pass legislation for the plans, but that the case for the technology had “simply unravelled” when she had examined it. In response, Drax described the Conservatives’ change in position as “political point scoring”.

While the Humber Energy Board report lists the Drax proposals as among the private sector investments, it describes the broader net zero plans for the region – which also include hydrogen and offshore wind development – as an “ecosystem” that should be viewed as an interconnected whole.

Paul Fursey, Lead Executive UK & General Manager of the Phillips 66 Humber Refinery, said: “This report sets out a clear roadmap for a thriving, lower-carbon industrial cluster which can be effectively delivered if we have the necessary support from Government. Our investment in lower-carbon technologies will not only act as an anchor for future carbon capture pipelines but attract significant investment to the region.”

The new report has also received cross-party support.

Labour MP for Great Grimsby and Cleethorpes Melanie Onn said: “The Humber Energy Board has a clear plan to support the delivery of the Government’s missions of growth and clean power.

“With £15 billion worth of private sector funds ready to invest, and tens of thousands of future job opportunities for our region, making progress on the delivery of a carbon capture pipeline in the Humber is the first step towards unlocking the potential of this industrial heartland, and ensuring decarbonisation does not mean deindustrialisation for our communities.”

Mike Ross, the Liberal Democrat leader of Hull City Council, said: “Businesses across the Humber have demonstrated a clear vision for how they will play their role in supporting us to achieve our net zero targets, in creating new jobs, and in helping grow our economy.

"The recommendations within this report set out a clear roadmap for government to help unlock £15bn worth of investment and create thousands of new opportunities for our residents.”

A Government spokesperson said: “We are entering a new era for the clean energy industry, with carbon capture cluster projects launched in the North West and North East of England with up to £21.7bn funding.

“These projects will set the UK on course to become a global leader in carbon capture and hydrogen – set to support 50,000 jobs and turbocharge growth for decades to come.”