Exclusive:Viking CCS: Humber carbon capture and storage project granted planning permission

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.

On Wednesday, the Planning Inspectorate confirmed permission to build the pipeline - a major step forward in the multi-billion pound project.

The project will now have to wait until after the Government’s spending review, in the summer, to see if it can get the financial support to proceed.

Sarah Jones, the Industry Minister, told The Yorkshire Post: “Since July, the Government has approved planning consent for 16 major infrastructure projects - enough clean energy to power nearly two million homes - as part of our mission to become a clean energy superpower and get Britain building.

“Carbon capture has the potential to create tens of thousands of good skilled jobs in our industrial heartlands, whilst protecting existing jobs in heavy industry such as cement and chemicals.

“We’re backing welders, electricians and engineers, whilst protecting future generations by tackling the climate crisis.”

The Humber “Energy Estuary” generates 20 per cent of the UK’s total electricity, creates one-third of its refinery products and is the location for the importation of around one-fifth of all gas into the country. It is also the largest emitter of carbon dioxide in Britain.

Last year, Sir Keir Starmer announced almost £22bn worth of funding for the “track one” clusters in Teesside and Merseyside, the Humber was not included as it has been allocated in “track two”.

Business groups say they are ready to invest more than £15bn in decarbonisation projects in the region, if the government goes ahead with CCUS investment.

However, since Rachel Reeves’ Labour conference speech announcing planned investment in the Humber, senior Government figures have failed to guarantee the funding.

Energy Secretary Ed Miliband recently confirmed to this paper that businesses would have to wait until later in the year.

“It's an important project for the region, it's an important project for the country, but obviously these decisions are all subject to the spending review,” he said.

“That's the right approach because, as Rachel [Reeves] always says, stability is the foundation of everything that we do.”

Drax’s Richard Gwilliam, chair of the Humber Energy Board, said: “CCS is a critical technology to enable the region’s existing asset base to decarbonise, ensuring the Humber can continue to provide energy security for the UK whilst supporting our climate targets and meaning that decarbonisation for the Humber does not mean deindustrialisation.

“However, businesses and investors need certainty. The Government’s spending review is a pivotal moment to provide the long-term financial clarity required to unlock private investment and accelerate delivery.

“We urge the Government to provide the certainty needed to ensure these nationally significant projects move forward at pace.

“The Humber stands ready to deliver, but we need commitment and funding certainty to make it happen.”