Government set to announce carbon capture projects on 'Green Day'

The announcement comes as part of a string of clean energy and climate change revelations dubbed “Green Day”.

The investment in carbon capture and storage technology was first announced by the Chancellor during his Spring Budget where he pledged £20 billion of funding which would help decarbonise industry and gas as part of the Government’s net zero commitments.

The Government confirmed the first wave of clean energy projects this month, with Grant Shapps, the Energy Secretary, set to announce the first round of funding tomorrow.

Mr Shapps’ speech is expected to include the list of the “Track-1” projects in addition to an update on how other projects can receive funding over the coming year.

It comes as part of the Government’s commitment to create a resilient mix of energy, robust enough to withstand global factors such as the war in Ukraine.

Investment in carbon capture technology has given ministers the opportunity to invest in Yorkshire’s ambitions to lead on climate change, with clusters based around the east coast and the Humber set to benefit from investment in schemes which can help decarbonise heavy industry and gas production.

Drax, the biomass energy giant based in North Yorkshire, has been in negotiations with the Government for several months over its own carbon capture scheme for biomass energy, called BECCS.

The plans, which have been under consultation with ministers and civil servants since last year, received the backing of Rishi Sunak during the summer’s Conservative leadership campaign.

The project would see as many as 10,000 jobs created by implementing BECCS at the Drax Power Station in North Yorkshire.

However sources inside Government were last night reluctant to tell The Yorkshire Post if Drax would be included in the first round of projects to be announced tomorrow by the Energy Secretary.

It is understood that if companies such as Drax were to miss out on the initial stage of funding, they would still be open for further rounds for their projects later this year.

Drax is poised to announce £2 billion into its BECCS scheme and has been seeking assurance from the Government that it will get the investment that it needs in order to invest in the UK.

Last week the company announced that it was pausing its investment programme into the project at the North Yorkshire Power Station until it receives “Track 1 status” from the Government.

Will Gardiner, the company’s CEO, said at the time of the announcement: “Until we have this clarity, we are pausing our multi-million pound investment programme in the UK BECCS project and urge Government to use the planned announcement at the end of the month to outline their support for this.

“Any further delays to this project could impact the UK’s security of supply, net zero and levelling-up ambitions and the viability of Drax Power Station.”

It comes following increased incentives for green energy companies and technology, such as those seen in the US with President Joe Biden’s Inflation Reduction Act (IRA).

This was followed by a scheduled visit by US Senators to the North Yorkshire power station earlier this month as America continues its attempt to entice investment away from Europe.

A Department for Energy Security and Net Zero spokesperson said:“The Government is committed to achieving energy security and independence - and carbon capture has a significant role to play in getting us there.

“At the Budget, the Chancellor announced an unprecedented £20 billion investment in the early development of CCUS. This investment will put us on track to store 20 – 30 million tonnes of CO2 a year by 2030. We aim to establish two carbon capture usage and storage industrial clusters by the mid-2020s and a further two clusters by 2030.

“We will make an announcement shortly.”