The UK government has announced that it will allocate $38.9 million (£28.6 million) to the Peak Cluster project—a carbon capture and storage (CCS) initiative that will tackle industrial CO2 emissions and store them underground.
In an announcement made by Finance Minister Rachel Reeves on July 1, 2025, it was shared that the project is set to receive the financial support through the National Wealth Fund.
The government highlighted that this investment decision was driven not only by the expected climate-positive effect of the project but also by the economic benefits it will introduce, as it is projected to create many employment opportunities in central and northern England.
Peak Cluster was created to address carbon emissions from hard-to-abate industries.
Specifically, the project includes CO2 capture at cement and lime plants in Derbyshire and Staffordshire, an effort that contributes to the net-zero by 2050 transition of these industrial sectors.
The project is led by Progressive Energy, and it was developed in partnership with Holcim UK, Breedon, Tarmac, and Sigma Roc.
It was designed with a vision of removing CO2 emissions from its network of partnering plants by 3Mt/yr from 2032, a volume that matches 25% of annual carbon dioxide output for its area.
The CO2 captured from its partnering locations will then be transported via a pipeline to Morecambe Net Zero’s abandoned gas fields under the East Irish Sea.
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For the UK government, this investment decision forms part of a broader strategy for reducing emissions and transitioning to a low-carbon economy.
This funding is part of a larger pledge of support for CCS projects in the UK by the National Wealth Fund, one that intends to invest a staggering $1.3 billion (£1 billion) into national decarbonization initiatives.
As clarified by the government, the funding allocated to the Peak Cluster project represents the first portion of this larger commitment, and more funding rounds are expected to be made in the future as CCS projects advance through their planning and regulatory stages.
Read more: Opinion: The UK Government Must Accelerate The Route To Market For CCS Projects
