Ministers back '20,000-job' carbon capture project

The UK government has announced strong support for the Viking Carbon Capture and Storage (CCS) project, a major initiative aimed at reducing industrial carbon emissions and boosting the economy. Chancellor Rachel Reeves confirmed backing for the project during her Spending Review speech, highlighting its potential to create around 20,000 jobs during the construction phase. The Viking CCS project will capture carbon dioxide emissions from industries in the Immingham area and transport the gas through pipelines to be stored safely beneath the North Sea. This process is crucial for reducing the UK’s carbon footprint and meeting climate goals.

Harbour Energy, the company leading the Viking CCS project, welcomed the government’s announcement, calling it a clear signal that carbon capture infrastructure is a priority for economic growth in this parliamentary term. The government has allocated £9. 4 billion in capital budgets to support carbon capture clusters, which are groups of projects designed to capture and store carbon emissions while promoting clean energy and energy security. The Viking project is one of two major schemes receiving government backing, alongside the Acorn project based in St Fergus, Aberdeenshire. Planning consent for Viking was granted in April, and a final investment decision is expected later in this parliament.

The project involves constructing a 55-kilometer pipeline to transport captured emissions from Immingham to the site of the former Theddlethorpe Gas Terminal on the Lincolnshire coast. The government estimates that Viking could support approximately 20,000 jobs, including 1,000 apprenticeships, at the peak of construction. Once operational, the Viking and Acorn clusters are expected to remove a combined total of 18 million tonnes of carbon dioxide from the atmosphere each year. Beyond carbon capture, the technology could also help generate low-carbon power and enable the use of hydrogen as a clean energy source, contributing to the UK’s transition to a greener economy.