An industrial site on Teesside on the edge of water. There are chimneys bellowing smoke in the distance.NEP/Equinor
Facilities to capture and store carbon emissions from energy, industry and hydrogen production will support 2,000 jobs in the north-east of England, the government has said.
In October, it pledged £22bn funding for "carbon capture clusters" on Teesside and Merseyside over the next 25 years, in the hope of attracting private investment and to help the UK meet climate goals.
The Department for Energy Security and Net Zero said contracts had now been signed for projects on Teesside, with construction expected to begin from mid-2025 and a start-up scheduled for 2028.
While Prime Minister Sir Keir Starmer said the move would "reignite industrial heartlands" and "kickstart growth", some green campaigners said the investment would "extend the life of planet-heating oil and gas production".
The projects on Teesside involve a collaboration between energy firm Equinor and partners Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power).
A spokesman for Equinor called the signing of contracts a "major milestone".
A map of the proposed locations of C02 pipelines on Teesside stretching out to sea.NEP/Equinor
The firm said the plan was to transport and store up to four million tonnes of captured carbon dioxide emissions per year from three Teesside projects.
This would rise to an average of up to 23 million tonnes by 2035, it added.
Energy Secretary Ed Miliband said: "This investment launches a new era for clean energy in Britain - boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East."
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Carbon capture and storage