£28.6 million invested in Peak Cluster carbon capture project

The £28.6 million investment will help develop the project, which will decarbonise 40 percent of the UK’s overall cement and lime production, and secure and create jobs.

Peak Cluster, led by Progressive Energy, was launched in May 2023 and is a partnership of Holcim UK, Breedon, Tarmac and Sigma Roc which own cement and lime plants in Derbyshire and Staffordshire.

This includes Holcim UK’s cement plant in Cauldon, Staffordshire, which employs more than 140 people and has the capacity to produce up to one million tonnes of cement a year.

“This landmark investment will catalyse our carbon
capture sector to deliver thousands of highly skilled jobs and growth across our industrial heartlands, as part of our Plan for Change,” Energy Secretary, Ed Miliband, said.

“Workers in the North Sea and Britain’s manufacturing heartlands will drive forward the country’s industrial renewal, positioning them at the forefront of the UK’s clean energy transition.”

The manufacturing of cement involves the process of heating the primary materials involved, triggering a chemical reaction which releases CO2.

Capturing and storing CO2 through carbon capture and storage (CCS) technology will help the cement industry to decarbonise and reach its net zero
goals. 

The Peak Cluster project aims to cut annual carbon emissions from its partners by three million tonnes a year from 2032  - a quarter of annual CO2 output for the area. 

This will be achieved through capturing carbon dioxide from the plants and transporting it via pipeline to be permanently locked away under the East Irish Sea in disused gas fields run by Morecambe Net Zero.

The planned investment will be used to further develop the project through to a Final Investment Decision (FID) in 2028. This will include the successful completion of Front-End Engineering and Design
(FEED) and other studies that will underpin the Development Consent Order (DCO) process.

Peak Cluster will safeguard over 2,000 existing jobs and create a further 1,500 roles throughout the construction and lifetime of the project. A total of 13,000 jobs could be created and secured in the Midlands and North West through the wider Peak Cluster and MNZ project.

Lee Sleight, Chief Executive Officer for Holcim UK, said: “We really welcome this significant investment into the Peak Cluster. 

“Cement is vital to help us build the new homes, schools, offices and infrastructure the country needs. But we
cannot decarbonise the sector through low-carbon fuels or alternative materials alone. CCS is essential if we are to achieve net zero by 2050.”

John Egan, Peak Cluster Ltd CEO, said: “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.

“We will work closely with [the] Government to ensure that Peak Cluster and MNZ work together to secure the future of this foundation industry, creating a backbone of industrial opportunity that benefits communities across the north of England – for the UK and beyond.”