A £28.6m investment from the National Wealth Fund in a major carbon capture project could create and secure thousands of jobs across Derbyshire, Staffordshire and the North-west.

The Peak Cluster project, the world’s largest cement decarbonisation project, is being supported by the National Wealth Fund. It is the first step towards the development of a carbon capture pipeline between cement and lime companies in the Peak District which will store emissions deep below the Irish Sea.

The National Wealth Fund will commit at least £5.8bn by 2030 in hydrogen, carbon capture, ports and supply chains, gigafactories, EV supply chains and steel. This will help industries decarbonise and to accelerate Britain’s transformation into a clean energy superpower.

Announcing the news today (7 July) chancellor Rachel Reeves said: “We’re modernising the cement and lime industry, delivering vital carbon capture infrastructure and creating jobs across Derbyshire, Staffordshire and the North-west to put more money into working people’s pockets.”

This is the National Wealth Fund’s first carbon capture investment since the chancellor named it a priority in March.

The £59.6m equity investment in Peak Cluster includes £28.6m from the National Wealth Fund and £31m from a joint venture between Summit Energy Evolution (part of Sumitomo Corporation), Progressive Energy Peak and the Peak Cluster cement and lime producers - Tarmac, Breedon, Holcim and SigmaRoc.

Together, Peak Cluster and Morecambe Net Zero could create and secure 13,000 jobs. Specifically for Peak Cluster, this includes supporting over 2,000 existing jobs in the cement and lime industry, creating around 300 new jobs at manufacturing sites, and generating 1,200 temporary jobs for the construction of the pipeline and capture facilities.

John Flint, CEO of the National Wealth Fund, 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”.

John Egan, CEO of Peak Cluster, added: “Peak Cluster is focused on securing a sustainable future for the cement and lime industry. Together with MNZ, the UK’s biggest carbon store, we will capture, transport and store CO₂ to support industry to thrive in a low carbon future.

“Through the National Wealth Fund, government will support the development of essential infrastructure to secure good jobs with good wages, produce sought-after low carbon products here in Britain, grow the UK’s supply chain and skills base, secure private investment and lead the global low carbon technology sector.  Peak Cluster, in partnership with MNZ, ticks every one of these boxes.

“We will work closely with Government to ensure that Peak Cluster and MNZ together can help secure the future of this foundation industry, creating a backbone of industrial opportunity that benefits communities across the Midlands and North-west of England – for the UK and beyond.”

Cement and lime are among the hardest sectors to decarbonise, as their emissions can’t be cut simply by switching to low-carbon fuels. By investing alongside industry and reducing early-stage risks, the fund will help unlock private investment to advance and build the Peak Cluster project.