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Energy firm Eni is set to award up to £2bn in supply chain contracts for its Liverpool Bay carbon capture and storage (CCS) project, following the finalisation of a deal with the UK government.
The announcement means construction of the scheme is now ready to begin, with the government stating it will support around 2,000 jobs. The Liverpool Bay project forms part of the HyNet industrial cluster, which spans North Wales and the North West of England.
The government said the project would support decarbonisation of industrial sectors including cement, energy from waste and hydrogen production, as well as the future generation of low carbon power.
The North Sea Transition Authority has awarded three carbon storage permits to Eni to support the scheme.
The project is the second government-backed CCS network to reach final investment decision, following the East Coast Cluster in Teesside in December.
Prime minister Sir Keir Starmer confirmed the deal at the Future of Energy Security Summit in London on 24 April.
He said: “Shovels are ready for the ground, supporting over 2,000 new jobs and thousands more indirectly.”
The summit, hosted by the UK government and the International Energy Agency, also saw the launch of a UK-led Global Clean Power Alliance, aimed at strengthening global supply chains and speeding the clean energy transition across both developed and developing nations.
Energy secretary Ed Miliband said the deal fulfilled a government commitment to launch a UK CCS industry, supported by a £21.7bn funding allocation announced in October 2024.
Chancellor Rachel Reeves added that the deal would help “revitalise the UK’s industrial heartlands”, while foreign secretary David Lammy said the new alliance would focus on securing low-cost energy supply chains.
The government also announced planning reforms to streamline the consenting process for clean power infrastructure, including solar, wind and nuclear. It said planners would now be required to treat such projects as nationally significant priorities.
Ministers said the changes were intended to reduce delays caused by “lengthy paperwork and red tape”, citing historic hesitancy among planners due to unclear policy guidance.
Eni chief executive Claudio Descalzi said the company was positioned as a UK leader in CO₂ transport and storage through its role in HyNet. North Sea Transition Authority chief executive Stuart Payne said the latest permits marked “another major step” in delivering the UK’s CCS ambitions.
The government said CCUS – which involves storing captured CO₂ deep beneath the seabed – was essential to meeting net-zero targets, citing the Climate Change Committee’s assessment of the technology as “a necessity, not an option”.
A consultation on the National Policy Statements for energy, including planning reforms, is open until 29 May.
Source: Government press release
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Colin Marrs