Keir Starmer vows to fire up industrial heartlands with £22billion boost for two regions

Keir Starmer will set out plans today for 'carbon capture clusters' in Teesside and Merseyside, developed over the next 25 years, with the aim of creating thousands of jobs

Keir Starmer will promise to fire up Britain's industrial heartlands with nearly £22billion to boost clean power.

The Prime Minister will set out plans today for carbon capture clusters in Teesside and Merseyside, developed over the next 25 years, with the aim of creating thousands of jobs and attracting £8billion in private investment locally.

The technology involves capturing carbon dioxide from burning fuels for energy or industry before it reaches the atmosphere and storing it underground, such as in disused oil fields under the sea.

Carbon capture, utilisation and storage (CCUS) was described as a "necessity" for the UK to meet its net zero commitments by 2050 by the Government's independent climate advisers.

The new sites will help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around four million cars off the road - with the first carbon dioxide stored from 2028.

Ahead of a speech today, Mr Starmer said: "We’re reigniting our industrial heartlands by investing in the industry of the future. For the past 14 years, business has been second-guessing a dysfunctional government – which has set us back and caused an economic slump.

“Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology – to help deliver jobs, kickstart growth, and repair this country once and for all.”

Mr Starmer will be joined by Chancellor Rachel Reeves, and Energy Secretary Ed Miliband on a visit to the North West to confirm the cash which is expected to directly create 4,000 jobs and support another 50,000 in the long term.

The funding will also support the two transport and storage networks which will carry the carbon captured into the deep sea in Liverpool Bay and the North Sea. The UK has the capacity to store 200 years worth of emissions.

It comes after the closure of the Ratcliffe-on-Soar plant in Nottinghamshire on Monday marked the end of coal power in Britain.

Mr Miliband said: “On Monday, 150 years of coal in this country came to an end. Today, a new era begins. By securing this investment, we pave the way for securing the clean energy revolution that will rebuild Britain’s industrial heartlands."

Ms Reeves said: “This game-changing technology will bring 4,000 good jobs and billions of private investment into communities across Merseyside and Teesside, igniting growth in these industrial heartlands and powering up the rest of the country.

“Working in partnership with business is at the heart of our plan to deliver strong growth and investment, so we can rebuild Britain and make everyone better off”. This announcement will also help turbocharge the low carbon hydrogen sector by paving the way for the UK’s first large-scale hydrogen production plant, decarbonising vital industrial sectors.

James Richardson, acting chief executive of the Climate Change Committee, said: "We can't hit the country's targets without CCUS so this commitment to it is very reassuring. It will no doubt provide comfort to investors and business about the direction of travel for the country."

He added: "We know these projects will provide good, reliable jobs in communities that need them. It is important that prosperity for these parts of the country is built into a clean energy future."

But Greenpeace UK's policy director, Doug Parr, said £22 billion "is a lot of money to spend on something that is going to extend the life of planet-heating oil and gas production". He called for the bulk of the funds to be poured into creating new jobs in sectors such as offshore wind or a nationwide home insulation programme to cut bills.