The UK has launched a major carbon capture and storage (CCS) project targeting emissions from cement and lime production right in the heartland of Britain.

Chancellor Rachel Reeves has today announced a £28.6m investment from the National Wealth Fund (NWF), topping up a private-sector-backed total of £59.6m for what is now the world’s biggest industrial decarbonisation initiative of its kind.

The plan: pipe CO₂ from cement and lime factories across the Peak District — stretching through Derbyshire, Staffordshire, and the North West — to depleted gas fields under the Irish Sea, near Barrow-in-Furness.

The scheme is expected to reduce carbon emissions by over 3 million tonnes per year, the equivalent of taking around 1.5 million cars off the road annually, according to reuters.

But crucially, this isn’t just a clean-tech project; it’s a jobs engine. Around 300 permanent roles will support plant operations, while 1,200 construction jobs will roll out during the pipeline build . The initiative could also indirectly help support 13,000 jobs across the region.

Why cement matters

Cement production alone accounts for approximately 7 to 8% of global CO₂ emissions. If cement were a country, it would rank third in emissions — behind only China and the US. Decarbonising cement and lime is notoriously challenging, so CCS may be the only viable route to reach net zero in these sectors.

The Peak Cluster pipeline ties into broader UK efforts. Already supported by a potential £21.7bn government commitment to CCS, this project forms part of an industrial-cluster strategy currently developing new CO₂ storage in the Irish Sea and off Teesside.

The NWF’s backing sends a signal, that private investment in hard-to-abate sectors like cement and lime is essential to meet net-zero goals.

A global carbon capture race

The International Energy Agency (IEA) expects carbon capture capacity to grow to 435 million tonnes per year by 2030, based on announced projects. Countries with infrastructure, skills and geological advantages are positioning themselves to lead, including the UK.

What the UK has in its favour:

  • Vast, suitable geological formations in the North Sea for CO₂ storage
  • A skilled workforce, particularly from the oil and gas industry
  • Supportive industrial and innovation policy from both current and previous governments

So, with the geology, the skills, and now the political will to lead on carbon capture, the challenge will be maintaining that momentum; scaling infrastructure, securing further investment, and ensuring communities and workers benefit from the green industrial revolution already underway.