Drax, National Grid and Equinor have launched a new campaign to secure government backing for a zero-carbon industrial cluster in the Humber region.
The consortium was formed in May in response to the government’s announcement of £170 million of funding to support the development of the UK’s first such scheme by 2040.
The cluster would be anchored around a carbon capture and storage (CCS) network linked to Drax’s power station in Yorkshire, where the firm is already capturing emissions from one of its biomass units as part of a £400,000 pilot project.
To launch the campaign, the consortium has met with MPs and policy-makers to explain the benefits to the Humber – the most carbon intensive industrial region in the UK – in terms of decarbonisation, jobs and export opportunities.
It warned that if industrial businesses across the Humber failed to decarbonise, they would face between £1.4 billion and £4.2 billion in carbon taxes by 2040, making them less attractive to global investors and putting jobs at risk.
The consortium is also inviting expressions of interests from businesses in the area to sign up to the campaign. It has already partnered with CATCH – a regional trade body for industrial businesses – and the Humber Local Enterprise Partnership.
Drax Group chief executive Will Gardiner said: “By working together the Humber region can become the world’s first zero carbon economy and thrive again as a British industrial powerhouse and be at the forefront of the fight against the climate crisis.
“We can help Britain become a world leader in emerging technologies like carbon capture, preserving and creating jobs, and rebalancing the economy.”
Jon Butterworth, chief operating officer for global transmission at National Grid Ventures, said: “This campaign is about tackling carbon so that we can keep major industrial business across the Humber open. If we get it right, we will help put the region back on the world stage and attract the industries of the future.
“The power industry has already made great strides to decarbonise the sector and continues to do so through the growth of renewables, battery storage and interconnectors. Today’s (9 September) call for support represents the next critical step in helping us make sure we also get our plans right for industry. I urge them to join us and help shape a better future for the Humber.”
The consortium is currently conducting feasibility studies and is aiming to have the cluster up and running by the mid-2020s.