United Kingdom's National Affluence Fund Supports Carbon Capture Technology
The Peak Cluster carbon dioxide (CO2) transport pipeline is currently under active development, with a £59.6 million equity raise announced in July 2025. This significant investment, including a cornerstone investment of £28.6 million from the UK National Wealth Fund, supports the development work towards a Final Investment Decision as early as 2028.
The project, led by Peak Cluster Ltd, boasts key industrial partners such as cement and lime producers Tarmac, Breedon, Holcim, and SigmaRoc, energy developer Progressive Energy, and Summit Energy Evolution Ltd (SEEL), a subsidiary of Sumitomo Corporation. These partners collaborate through a joint venture and have been involved since the project's origination in 2022.
Once operational, the Peak Cluster pipeline will transport captured CO2 from four cement and lime plants in Derbyshire and Staffordshire, accounting for around 40% of the UK's cement and lime production. The pipeline will deliver around 3 million tonnes of CO2 annually to the Morecambe Net Zero (MNZ) storage facility in the East Irish Sea, being developed by Spirit Energy. This storage site, once fully operational, is expected to become the UK's largest CO2 store.
The project aims to be a central component of the UK's carbon capture and storage (CCS) network. By reducing emissions from hard-to-decarbonize industrial sectors that produce significant process emissions not addressable by low-carbon fuels alone, it is expected to enable decarbonization of the largest UK cement and lime cluster and help the UK meet its government target of capturing 50 million tons of CO2 annually by 2035.
In addition to environmental benefits, the Peak Cluster CCS network and the associated Morecambe Net Zero storage project are projected to safeguard and create around 13,000 jobs across the Midlands and North West England. This includes approximately 300 permanent jobs, 2,000 supported roles in production, and 1,200 temporary construction jobs. This positions the initiative as a major contributor to economic growth and the UK's clean energy transition.
The CPPIB, an early backer of CCS technology, has made investments in the Alberta Trunk Pipeline. The UK government has pledged £22bn in support for CCS projects over the next 25 years, with the Peak Cluster investment being the first pledge to the new CCS technology by the UK government.
In conclusion, the Peak Cluster pipeline is a well-funded, collaborative effort progressing through engineering design and regulatory steps to establish a critical CO2 transport infrastructure. It plays a pivotal role in the UK's CCS ambitions by linking industrial emitters with offshore storage, securing both emissions reductions and significant regional employment.
The significant investment of £59.6 million in the Peak Cluster pipeline, primarily from the UK National Wealth Fund, is a testament to the finance sector's involvement in environmental-science projects like climate-change mitigation, specifically carbon capture and storage (CCS) networks. The operational Peak Cluster pipeline, upon delivering around 3 million tonnes of CO2 annually to the Morecambe Net Zero storage facility, will not only contribute to the UK meeting its carbon targets but also create around 13,000 jobs, reinforcing the project's role in spurring economic growth and the clean energy transition.
