Carbon capture to bring £1.3bn, 4000 jobs to region

London - Investing in carbon capture and storage (CCS) in Yorkshire and Humber will provide a major boost to the UK economy, delivering £1.3bn and 4,000 skilled-jobs, a new report has revealed.

The report was commissioned by CO2Sense on behalf of the Yorkshire and Humber CCS Cluster Steering group, comprised of National Grid, 2Co Energy, Drax, General Electric, Amec and Tata Steel.

The finding were released just weeks before the government is due to announce the winners of billion pounds worth of funding and finance measures – under the Electricity Market Reform – for a national CCS programme, to be co-funded by the EU.

Two major projects in Yorkshire and Humber have been shortlisted for the funding.

The report states that Yorkshire and Humber is the best strategic location in Europe to build a CCS cluster and that putting this funding into the region will increase the area’s economic output by 0.8% per year.

The funding, said the study, could also attract up to £11 billion in foreign investment and a further 11,000 jobs.

Plans already set for Siemens and David Brown to locate large factories in to Yorkshire and Humber, CCS would further contribute to making the region an internationally recognised hub for innovation and leading low carbon technology.

The investment will also help the traditional industries in the area, such as power, steel, chemicals and cement which have been in decline since the 1960’s - to adapt and secure thousands of jobs for the future.

This report gives conclusive evidence for the business case for investing in CCS in Yorkshire and Humber, according to Barry Dodd, chairman of CO2Sense.

The opportunities for the supply chain - valued at up to £251million - are enormous, as are the potential for inward investment in the area,” said Dodd. “We want to see the government back these plans, which will bring so many opportunities for the UKs businesses.”

The report has also received support from a number of organisations, such as the IPPR North, CBI, TUC and Committee on Climate Change.

“Investing in CCS in Yorkshire and Humber is a vital way to unlock the potential of the northern economy,” said Ed Cox, director at IPPR North. “Investment in this kind of infrastructure can genuinely rebalance the UK economy and enable the north of England to take its place alongside more progressive, productive and resilient Northern European regions.”