The National Wealth Fund (NWF) has announced an investment in the development of Peak Cluster, a carbon capture project, marking NWF’s first carbon capture investment since the Chancellor highlighted it as a priority sector in which to deploy its additional £5.8bn capital.

Peak Cluster’s planned carbon dioxide transport pipeline could decarbonise 40 per cent of the UK’s cement and lime industry,.

The £28.6m equity investment is the cornerstone of a £59.6m equity raise, which also includes investment through a joint venture vehicle between Summit Energy Evolution (part of Sumitomo Corporation) and Progressive Energy Peak, as well as each of the Peak Cluster cement and lime producers; Tarmac, Breedon, Holcim and SigmaRoc.

Once constructed, the Peak Cluster pipeline will be the heart of a full value chain CCS network. Spirit Energy is currently converting its Morecambe gas fields in the East Irish Sea to create the UK’s biggest carbon dioxide (CO2) store. The Peak Cluster pipeline will transport CO2 emissions captured on its industrial plants across Derbyshire and Staffordshire to be stored by Morecambe Net Zero (MNZ).

John Flint, NWF CEO, said: “Substantial private investment, deployed at risk, will be needed to develop and deliver carbon capture projects across the UK. Through its investments, the NWF is well placed to support this. Capital must be committed now, especially in hard to abate sectors such as cement and lime, to ensure a pipeline of projects is ready for deployment and the UK is able to meet its ambitious carbon capture targets.”

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