A plan to transform the North West into one of the world's first low-carbon industrial clusters has been named as a forerunner in a Government scheme - and could now be set to receive major funding.
The project has been awarded 'track one' status from the Government's carbon capture, utilisation and storage (CCUS) scheme, and will now enter into negotiations with viability checks ahead of pulling in support from a £1bn fund.
HyNet would aim to cut emissions quicker than other industry clusters across the country – reducing carbon dioxide emissions by 10m tonnes every year by 2030, which is the equivalent of taking 4m cars off the road.
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The project would also be able to deliver 80% of the 海角视频’s clean hydrogen target for transport, industry and homes for 2030 and 50% of the hydrogen needed to meet the 海角视频’s 2050 net zero target.
East Coast Cluster, a project uniting Humber and Tees, is the only other project to have been selected.
Energy Minister Greg Hands made the announcement today.
He said: “Deploying CCUS will be a significant undertaking, these are new major infrastructure projects for a new sector of the economy and carry with them significant risks to deliver by the mid-2020s. Government will continue to play a role in providing long-term certainty to these projects to manage these risks and bring forward the 海角视频’s first CCUS clusters.
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“We remain committed to helping all industrial clusters to decarbonise as we work to reach net zero emissions by 2050, and we are clear that CCUS will continue to play a key role in this process.
"Consequently, the government continues to be committed to Track Two enabling 10Mtpa capacity operational by 2030. This puts these places - Teesside, the Humber, Merseyside, North Wales and the North East of Scotland - among the potential early SuperPlaces which will be transformed over the next decade.”
Ged Barlow, chief executive of Net Zero North West, said: “HyNet is vitally important not just to the decarbonisation of the North West but to the whole of the 海角视频, so we wholeheartedly welcome the Government’s decision to back the project as a track 1 cluster.
"This announcement shows how the North West is uniquely positioned to help drive the 海角视频’s transition to net zero.
"As our recent Net Zero North West manifesto made clear, we are not just talking about the opportunity we have a clear plan for how we can be the 海角视频’s first net zero region. With an unrivalled mix of low carbon energy projects already happening we have all the ingredients to underpin a long term, resilient net zero energy system in the 海角视频.”
The HyNet scheme is hoped to supply clean hydrogen and store carbon dioxide, helping businesses across the region cut greenhouse gas emissions, reduce costs, and launch green products.
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Project leaders estimate HyNet would also catalyse job growth across the North West and North Wales, with the potential to deliver a £17bn economic impact locally, protecting more than 340,000 manufacturing jobs in the region, and helping to create 6,000 low carbon roles.
The North West industrial cluster region stretches from Flintshire and Wrexham, through Cheshire, Liverpool City Region and Greater Manchester into Lancashire.
It boasts the largest concentration of advanced manufacturing and chemical production in the 海角视频 and is home to a concentration of energy intensive users. The HyNet North West hydrogen and carbon capture and storage project is being developed by partners including Progressive Energy, Cadent and Essar.
Responding to the news, Henri Murison, director of the Northern Powerhouse Partnership, said: “This could be a pivotal moment for the North taking the lead in a green energy revolution and is testament to the leadership of Metro Mayors Steve Rotheram and Ben Houchen, as well as private sector expertise and investment from those such as Semcorp, Drax and ENI.
“Now it’s time for clusters on both sides of the Pennines to collaborate on pioneering this technology further, as well as supporting those in Scotland to benefit from our early learnings in their efforts. The bulk of the industrial demand for carbon capture and storage is here, allowing us to protect traditional industries while creating new high skilled jobs and exportable know how.
“We need to tackle global net zero challenges here in the 海角视频 rather than simply exporting emissions to other countries. The Minister for Energy, Clean Growth and Climate Change Greg Hands MP and the government as a whole have made the right decision from both an economic and an environmental perspective.”
Clare Hayward, chair of Cheshire and Warrington LEP, said: “We are absolutely delighted by today’s announcement that HyNet North West low carbon and energy project will be one of the first two to be delivered in the 海角视频.
“We have ambitious targets to reach net zero and make Cheshire and Warrington a world leader in low carbon technologies and innovation and this is a huge step forward for the decarbonisation of our region.
“The North West and North Wales is a region which has the largest number of people employed in manufacturing in the 海角视频 and has the skills base to drive the hydrogen economy and help us to create the green jobs for the future.
“HyNet is a result of a great partnership with all of the stakeholders involved from across the region. We look forward to working together to put our ambitions into action.”