The UK government has announced funding of GBP171 million ($238 million) for nine projects to reduce emissions and indicated a plan to price carbon on industrial pollution as part of its climate change strategy, the Department for Business, Energy and Industrial Strategy said March 17.
The projects -- located in Scotland, South Wales, Merseyside, Humber and Teesside -- support engineering and design studies for the rollout of carbon capture usage and storage and hydrogen infrastructure. These include the HyNet North West project on Merseyside, Net Zero Teesside and H2H Saltend on Humberside.
Not listed among industrial project winners, however, is the Gigastack green hydrogen project on Humberside involving Orsted, Phillips 66 and ITM Power.
The funds are part of a wider strategy to cut CO2 emissions from industry, schools and hospitals, "creating and supporting up to 80,000 jobs over the next three decades," BEIS said.
Some GBP932 million is being directed to 429 public sector projects across England, funding low carbon heating systems such as heat pumps, and energy efficiency measures like insulation and LED lighting.
Industrial decarbonisation funding has been allocated to five regional project clusters on Merseyside, at St Fergus, Aberdeenshire, on Teesside, Humber and in South Wales.
On Merseyside, some GBP33 million has been allocated to HyNet North West.
The project aims to decarbonise industry by capturing and storing emissions, creating a hydrogen economy across the North West, and repurposing oil and gas facilities for carbon transport and storage.
It is to provide a blend of hydrogen and natural gas to local homes and businesses, in all reducing CO2 emissions by 1 million tonnes per year from 2025, rising to 10 million tonnes per year from 2030.
In Scotland, GBP31 million has been awarded to the Net Zero Infrastructure project funding offshore and onshore engineering studies connecting industrial sites across East Scotland to potential CO2 stores under the North Sea.
On Teesside the Northern Endurance Partnership will receive over GBP52 million for two projects, including a flexible gas power plant fitted with carbon capture, and an offshore CO2 transport and storage system.
Industrial carbon price
"Together the projects could capture around two million tonnes of CO2 annually from 2026, decarbonise 750 MW of power and reduce the region's industrial emissions by a third," BEIS said.
On Humberside, GBP21 million has been allocated to the Zero Carbon Humber Partnership, including H2H Saltend, Equinor's blue hydrogen production project on the north bank of the Humber, plus CO2 and hydrogen pipelines enabling industrial sites and power stations across the Humber to switch to hydrogen and/or capture and transport emissions.
A further GBP12 million has been awarded to Humber Zero, decarbonising the industrial complex at Immingham by creating a carbon capture and hydrogen hub.
The Humber projects aim to capture 25 million tonnes of carbon per year.
Finally GBP20 million goes to the South Wales Industrial Cluster, creating a net zero industrial zone from Pembrokeshire to the Welsh/English border by 2040. This is another CCS and hydrogen project aimed at addressing the region's emissions of nine million tonnes of carbon a year.
Further details of the industrial strategy would be made available later March 17, BEIS said.
This would include the use of carbon pricing to get industry to take account of emissions in investment decisions, and a policy framework to ensure fuel switching from fossil fuels to hydrogen, electricity and biomass.
