Leaders welcome multi-billion pound green technology plan for North West – and say it could protect manufacturing jobs for generations
2025-10-02 05:17:20
The Government’s multi-billion pound investment in green tech in the North West could secure manufacturing jobs for generations to come – that's the upbeat message from business and sector leaders after Sir Keir Starmer’s visit to the region.
The Prime Minister and Chancellor Rachel Reeves visited the Encirc glass plant in Ellesmere Port to announce £22bn in support for two carbon capture and storage (CCS) schemes – Hynet, which stretches across the North West and North Wales, and the East Coast Cluster in Teesside and the Humber.
Hynet will see emissions from sites including the Stanlow oil refinery stored in disused oil and gas reservoirs under the Irish Sea. The PM said his announcement “will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology – to help deliver jobs, kickstart growth, and repair this country once and for all.”
Encirc makes 3 billion glass vessels every year and works with some of the world’s biggest drinks brands. Its managing director Sean Murphy said: “The government’s announcement is a huge step forward for sustainable manufacturers like ourselves, and will help support the journey towards the production of billions of low carbon glass bottles and jars for global food and drinks brands across the UK.
“As a business with sustainability at its core, Encirc has been a longtime innovator in finding ways to reduce our carbon footprint, both on the manufacturing process as well as in logistics and supply chain.
“The regional focus is a sign of confidence for businesses here in the north west, and we hope further afield, including places like Fermanagh which are often left behind.
“We look forward to working with UK Government on a range of issues to ensure that the right conditions are in place to enable the sort of inclusive green growth that benefits everyone across society.”
Encirc is part of Spanish based glass manufacturer, the Vidrala Group. Group CEO Raul Gomez said: “We are living in challenging times for consumer related industries. Today, more than ever, we need investments and protection, and that’s why we are honoured to host the Prime Minister and to welcome the support in this announcement.
“Glass is infinitely recyclable and the healthiest packaging material of choice. Encirc’s unique 360 service proposal separates us from other manufactures and delivers food and beverage products in the most sustainable way.
“That’s why the Vidrala Group remains firmly committed to our UK business. We have an ambitious industrial plan that includes employment, investment and improvements in sustainability to help our customers deploy their brands in a competitive way, through UK made products, for the benefit of the British consumer.”
Stanlow refinery, owned by Essar Energy Transition (EET) sits next to Encirc and is at the heart of the HyNet project. It hopes its own investments in hydrogen technology, combined with its connections to HyNet, will slash its emissions by 95%. Meanwhile the hydrogen it produces will be used by heavy industry locally – including by Encirc next door.
Tony Fountain, managing partner of EET said: “(It is) fantastic to see the Government moving forward with the HyNet cluster, at the heart of which is our first low carbon hydrogen production plant at Stanlow, creating jobs and growth in the North West. Now that Government support is confirmed, we look forward to taking our final investment decision and starting construction in 2025.”
Joe Seifert, CEO of EET Hydrogen, added: “Today’s announcement from Government represents a critical moment in the UK’s hydrogen industry. The North West is once again leading global industry into a new era - producing critical everyday items but without the carbon impact. This investment will help to secure and grow jobs in our manufacturing heartlands for generations to come.”
Local business leaders say the investment will be great news for Cheshire more widely.
Cllr Louise Gittins, chair of Cheshire and Warrington’s sub regional leaders board said: “This is excellent news for Cheshire and Warrington bringing £5.5 billion of investment and 6000 new jobs to the area.
“The three local authorities are committed to making Cheshire and Warrington the healthiest, most sustainable, inclusive and growing economy in the UK and this investment is a further substantial step towards that vision. It is also the key first part in our even more ambitious £30 billion plan that will make the North West and North Wales the home of the UK and the world’s first net zero carbon industrial cluster by 2040.”
Steve Purdham, chair of the Business Advisory Board which provides strategic advice to the region’s three councils said: “HyNet is a game-changer for Cheshire and Warrington, the North West and North Wales, marking a new era of economic opportunity, technological leadership, and environmental progress. This monumental investment will inject billions into our region, create thousands of jobs, and firmly place us at the forefront of the global green industrial revolution. It’s a powerful signal that Cheshire and Warrington are open for business, innovation, and sustainable growth. With the removal of millions of tonnes of carbon this will also pave the way to a prosperous, low-carbon future for generations to come.”
Jane Gaston, CEO at Net Zero North West, said: “The deployment of Carbon Capture and Storage and Low Carbon Hydrogen at a large scale will enable us to decarbonise industries such as cement production, hydrogen production, and waste processing.
“By capturing emissions and storing them in depleted gas reservoirs in Liverpool Bay, the region is taking a significant step towards a low carbon future.
“In the next phase of the project, HyNet will build out the infrastructure required to transport hydrogen to industrial and power generation users across the region and store hydrogen at scale in underground salt caverns in Cheshire. This will not only contribute to the UK's energy security but also provide low carbon dispatchable power when renewable energy sources are unavailable.
“By taking this opportunity, the North West region will solidify the country's global lead in CCS and low carbon hydrogen, develop and export skills, expand its supply chain in these sectors and generate comprehensive inward investment and socio-economic benefits. We are excited to support HyNet on this groundbreaking project and look forward to the positive impact it will have on the region and the UK as a whole.”
Carbon capture technology has its critics, who say the technology has yet to be proven at scale and allows oil and gas production to continue.
Greenpeace UK’s policy director, Doug Parr, said today that £22 billion “is a lot of money to spend on something that is going to extend the life of planet-heating oil and gas production”.
He acknowledged it was vital the Government committed to industrial investment and job creation while tackling the climate crisis, “it needs to be the right sort of industries”.
Llinos Medi MP, Plaid Cymru’s Energy spokesperson, said: “Today's announcement of investment in experimental carbon capture technology in north Wales is welcome, however this cannot be at the expense of proven clean technologies.
“Only last month in the latest auction round for renewable energy projects, Wales only received a pitiful 1.63% of the investment.
“Time is running out for Wales to hit its 2030 climate goals. If the UK government is serious about meeting Net Zero targets and creating green jobs in north Wales, then it should be developing Wales’ energy potential at pace by increasing public investment in GB Energy and rapidly upgrading the electricity grid to cope with the new demand.”
Other industry analysts say the time is now right to try carbon capture and see if it can allow the UK to hit green targets without closing down key industries.
James Murray, co-founder of Net Zero Festival and editor-in-chief of BusinessGreen said: “This is a big moment for the UK’s net zero transition, which promises to demonstrate how the decarbonisation of heavy industry is possible over the coming decade. These projects have been in the pipeline for years and after several false starts, the new funding package is further evidence of the new government’s commitment to moving quickly to unlock investment in green industries.
“The onus is now on the nascent CCS industry to prove its doubters wrong, get projects to a final investment decision, deliver working commercial scale projects, and most importantly provide a pathway to bringing down costs over time.”
Toby Lockwood, technology and markets director for CCS at global nonprofit organisation Clean Air Task Force, said: “This long-term investment should be money well spent, as without carbon capture and storage these facilities would have continued adding millions of tonnes of carbon dioxide into the atmosphere for years to come.
“With the cost of carbon emissions set to rise, it makes sense to invest in technologies which can make these industries compatible with our climate targets, rather than sit back as they are ultimately forced to shut down.”
Rebecca Tremain, director of UK policy at Clean Air Task Force, said: “There is ample scientific evidence that returning billions of tonnes of CO2 to the earth will be an essential part of global efforts to fight climate change, and the necessary technologies are already available today.
“As more European countries commit to funding CCS, the UK’s significant support for the technology will help maintain the country’s climate leadership and industrial competitiveness, while bringing down the cost of future projects for the UK and others.”
Darren Walsh, DWF's Global Head of Energy, said: "The funding announced today will not only create jobs and attract private investment but also position the UK as a global leader in CCUS and hydrogen technologies. The announcement marks a significant moment for the UK's industrial heartlands, particularly in the North West and North East of England. This funding will help inject much-needed growth into these regions.
“The impact of this initiative will be far-reaching, driving innovation and sustainability in the energy sector. We believe that the initiative will assist in the successful development of the UK's CCUS and hydrogen sectors given the substantial access to funding and the government's commitment to working closely with industry, which will be an essential element to achieving success. The level of funding being made available is significant and should be a sufficient catalyst to seeking to achieve the aims of reducing carbon emissions and fostering economic growth.
"However, while today's announcement is a major step in the right direction, there are always opportunities to go further. Additional measures to support the development of renewable energy sources and further incentives for private investment must continue in order to maximise the impact of this initiative.
“Industry has already committed significant funding and resource in developing these nascent markets, with recent final investment decisions being made in key energy infrastructure projects. Industry has shown its commitment to these sectors; and Government must continue to demonstrate policy and funding commitments to maintain industry and investor confidence. Today's announcement is a strong foundation upon which to build a greener, more sustainable future for the UK."
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