United Kingdom

UK Invests £28.6M in Peak District Carbon Capture Project

Published JUL 7 2025

Story

Above: Prime Minister Sir Keir Starmer, Energy Secretary Ed Miliband, and Chancellor Rachel Reeves in October 2024. Image credit: Anthony Devlin/Bloomberg/Getty Images

The Facts

The U.K. government's National Wealth Fund (NWF) has announced a £28.6 million equity investment in the Peak Cluster project, marking the fund's first carbon capture investment since Chancellor Rachel Reeves identified it as a strategic priority in March.
GOV.UK
National Wealth Fund
The Peak Cluster project will develop a carbon dioxide transport pipeline connecting cement and lime factories across Derbyshire and Staffordshire to storage facilities beneath the Irish Sea, preventing over 3 million tonnes of CO2 from entering the atmosphere annually.
BBC News
National Wealth Fund
The project represents the world's largest cement decarbonization initiative, targeting 40% of the U.K.'s cement and lime production in an industry responsible for 7.5% of global human-made CO2 emissions that cannot easily transition to low-carbon fuels.
BBC News
GOV.UK
Government officials claim the initiative will create approximately 300 permanent jobs at manufacturing sites, 1,200 temporary construction positions, and support over 2,000 existing industry roles across the Midlands and North West regions.
BBC News
National Wealth Fund
The £59.6 million total investment combines the government's £28.6 million contribution with £31 million from private partners including Holcim, Tarmac, Breedon, SigmaRoc, Summit Energy Evolution, and Progressive Energy through a joint venture structure.
Independent
GOV.UK
The NWF will capitalize nearly £28 billion by the end of the parliament, having been set up in October last year. In February this year, the House of Commons Public Accounts Committee described carbon capture as "unproven" and subsequent investment as "risky" for taxpayers and consumers.
Institute for Government
National Wealth Fund
Committees

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The Spin

Pro-government narrative

The U.K.'s carbon capture strategy represents a pivotal moment for industrial decarbonisation. Britain has extensive North Sea storage capacity and world-class expertise that position it to lead an emerging global market. This technology holds groundbreaking potential to safeguard jobs, drive economic growth, and deliver a cleaner planet.

GOV.UK

Sustainable Views

Opposition narrative

The U.K.'s carbon capture gamble is a costly distraction. Despite decades of development, the technology remains unproven at scale, with studies showing capture rates as low as 10%. This massive public investment merely diverts funds from proven solutions, placing taxpayers' money and U.K. energy prices at an unnecessary high risk.