Harbour Energy 'reviewing resource' at Humber carbon capture scheme over Government 'delays'

The fledgling technology is touted as an alternative to releasing carbon into the atmosphere, and is seen as essential to the UK reaching net zero by 2050.

Harbour is the operator of the scheme with a 60 per cent interest, while Bp has a 40 per cent stake.

It is part of Track 2 of the Government’s CCS projects, after £22bn of funding was granted to Track 1 in Teesside and Merseyside.

The Chancellor, Rachel Reeves, initially announced that the Government would support CCS in the Humber at her Labour Conference speech in 2024.

Since then, both Ms Reeves and the Energy Secretary, Ed Miliband, failed to guarantee funding to The Yorkshire Post, instead saying any decision will be made in the Spending Review.

Now, after announcing 250 job losses at its Aberdeen base, Harbour Energy has said it is assessing its staffing levels.

Scott Barr, managing director of the UK’s business, said: “We are also reviewing the resourcing required to support our Viking carbon capture and storage project, where progress beyond front-end engineering design and the recent securing of a Development Consent Order has been hindered by repeated delays to the Government’s Track 2 process.”

Businesses have said they have £15bn ready to invest in the Humber if the Government provides adequate support to get CCS off the ground.

Planning permission was granted last month, however the Harbour Energy decision now casts doubt on this.

Henri Murison, chief executive of the Northern Powerhouse Partnership, told The Yorkshire Post: “Across the Humber Estuary, CCS is essential to secure jobs in new growth opportunities like the hydrogen economy, and protect jobs in heavy industry like steel.

“The Viking project is the only route to retain any blast furnaces longer term in Scunthorpe and production of key products like Sustainable Aviation Fuel.

“Track 2 for the Humber is a national priority since the last government failed to deliver certainty for the UKs highest emitting industrial cluster.

“We need Ed Miliband and the Treasury to act with purpose to put right the delays and overly politicised decision making of their predecessors.

“Economic interests for the North as a whole - which are at stake - must come first.”

A spokesperson for Hull and East Yorkshire Combined Authority said: “We are aware from media reports that Harbour Energy has announced it is cutting jobs at its HQ in Aberdeen, and the press statements referenced national government issues.

“Some media reports have also referenced comments on uncertainty around the Viking CCS project in the Humber.

“We will continue to make the case to the government for investment in new technologies that will enable our powerhouse existing industries to thrive here, and we will work hard with businesses to continue attracting investment in the area."

It comes as energy giant Orsted said it will halt its Hornsea 4 project, a massive planned wind farm in the North Sea off the coast of East Yorkshire, that could have powered more than one million homes.

It said the project had suffered rising supply chain costs, higher interest rates and increasing risk of not finishing the project on time.

The Prime Minister’s official spokesman said: “The Government’s commitment to carbon capture and storage can be in no doubt.”