The National Wealth Fund has announced a £28.6 million (€33.2 million) equity investment in the UK’s cement decarbonisation project, Peak Cluster, to support the development of a planned carbon dioxide transport pipeline.
The investment is the cornerstone of a £59.6 million (€69.2 million) equity raise, which also includes investment through a joint venture vehicle between Summit Energy Evolution (part of Sumitomo) 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).
Cement and lime are foundation materials for many UK industries including construction, manufacturing and environmental functions, and are two of the hardest industrial sectors to decarbonise due to the high levels of CO2 emissions generated in the manufacturing process, which cannot be abated through transitioning to low carbon fuels. With Derbyshire and Staffordshire accounting for 40% of the country’s production of cement and lime, this project is a critical component in supporting the decarbonisation of the sector. Working together, Peak Cluster and MNZ will drive growth, creating and safeguarding around 13,000 jobs and securing a sustainable supply of UK-produced cement and lime.
NWF’s financing will be used to further develop the pipeline project through to a final investment decision (FID) as early as 2028, including the successful completion of front-end engineering and design (FEED) and other studies that underpin the planning consent process.
By investing alongside industry, supporting early development risk reduction and providing the critical financing for Peak Cluster through its DCO process, the NWF will remove some of the barriers for private investment to further develop and construct the project in the future. Through its support for Peak Cluster the NWF is building the market and stimulating largescale investment across the full value chain, including accelerating the decarbonisation of cement and lime and facilitating Spirit Energy’s development of the UK’s largest CO2 store.
With CCS one of the five priority sectors announced by chancellor Rachel Reeves, the NWF has an important role to play in helping amplify government policy, de-risk and accelerate the financing and delivery of these vital projects.
John Flint, NWF CEO, says: ‘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, adds: ‘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.’
Olivia Powis, CEO of the Carbon Capture and Storage Association comments: ‘The National Wealth Fund’s significant equity investment of £28.6 million in the Peak Cluster is fantastic news for the future of the cement and lime industry in the UK. It is further recognition of the vital role of carbon capture, utilisation and storage (CCUS) in decarbonising and futureproofing our critical industries.’
