United Kingdom's National Affluence Fund Endorses Carbon Capture Technology
UK's Peak Cluster Pipeline Project Advances Carbon Capture Efforts
The UK's Peak Cluster carbon dioxide (CO₂) transport pipeline project is progressing, with a recent £28.6 million investment from the UK Government’s National Wealth Fund marking the first pledge to new CCS technology in the UK. This investment is part of a total £59.6 million funding round, which also includes private investments from a joint venture between Summit Energy Evolution Ltd (Sumitomo Corporation) and Progressive Energy Peak Ltd, and cement and lime producers Tarmac, Breedon, Holcim, and SigmaRoc.
The project aims to build an onshore pipeline network linking several cement and lime plants in the Peak District—responsible for 40% of the UK’s domestic cement and lime production—to the Morecambe Net Zero (MNZ) site in the East Irish Sea. Spirit Energy is converting its Morecambe gas fields into the UK’s largest CO₂ storage facility beneath the seabed, which will permanently store the captured carbon.
Upon completion, the Peak Cluster pipeline will serve as a central part of a full value chain carbon capture and storage (CCS) network, transporting up to 3 million tonnes of CO₂ annually and enabling the decarbonization of the hard-to-abate cement and lime sectors. These industries are significant CO₂ emitters with limited alternative abatement options, making CCS essential. The project is expected to support about 2,000 existing jobs and create 1,200 new construction jobs, while safeguarding around 13,000 jobs in total across the region.
A development consent application for the pipeline is anticipated between July and September 2026, with a Final Investment Decision (FID) targeted as early as 2028. The project forms a key component of the UK Government’s broader industrial decarbonization strategy, which plans to capture 50 million tons of CO₂ annually by 2035 through CCS and related technologies.
The Canada Pension Plan Investment Board (CPPIB) is an early backer of CCS technology, with investments in the Alberta Trunk Pipeline. Institutional investors have approached CCS with caution, but the Peak Cluster project represents a significant step forward in demonstrating the viability and potential of CCS technology for the UK's industrial decarbonization.
| Aspect | Details | |-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | Funding | £59.6m total equity (including £28.6m from National Wealth Fund; private investments from Summit Energy Evolution, Progressive Energy, Tarmac, Breedon, Holcim, SigmaRoc) | | Partnerships | Peak Cluster Ltd formed by Progressive Energy, Summit Energy Evolution joint venture, major cement and lime producers, Spirit Energy (MNZ CO₂ storage partner) | | Project Role | Build pipeline to transport CO₂ from Peak District plants to Morecambe Net Zero offshore storage; central CCS network for UK cement/lime decarbonization | | Capacity and Impact | Capture and transport ~3 million tonnes of CO₂ annually; decarbonize 40% of UK cement and lime production; support/safeguard ~13,000 jobs | | Timeline | Development consent expected in 2026; Final Investment Decision aimed by 2028 | | Strategic Importance | Critical to UK’s industrial decarbonization; supports government's plan to capture 50Mt CO₂/year by 2035 |
This project represents the UK’s first carbon capture investment from the National Wealth Fund and is considered a cornerstone initiative in creating a resilient low-carbon industrial future. The Peak Cluster pipeline will transport CO₂ emissions captured from industrial plants in Derbyshire and Staffordshire, with the CO₂ emissions transported by the pipeline being stored by Morecambe Net Zero.
- The funding for the Peak Cluster pipeline project in the UK includes a £28.6 million investment from the UK Government’s National Wealth Fund, making it the first pledge to new CCS technology in the country.
- The Peak Cluster pipeline project, when completed, will serve as a crucial part of a full value chain carbon capture and storage (CCS) network, transporting up to 3 million tonnes of CO₂ annually for the decarbonization of the cement and lime sectors.
- The Canada Pension Plan Investment Board (CPPIB) has shown early interest in CCS technology, having investments in the Alberta Trunk Pipeline.
- With the aim of capturing 50 million tons of CO₂ annually by 2035 through CCS and related technologies, the Peak Cluster pipeline represents a key component of the UK Government’s broader industrial decarbonization strategy.
