Embracing a New Role in Carbon Capture
I am grateful for the warm introduction, Olivia. It brings me great pleasure to join you this afternoon as the newly appointed minister overseeing carbon capture, utilisation, and storage.
In July, the Prime Minister entrusted me with a new position within the department, as Olivia has mentioned, as Minister for Local Energy and Jobs. The essence of this role is straightforward.
The energy sector has always been crucial to our nation, providing jobs for tens of thousands and significantly contributing to our economy. As we navigate the energy transition, my primary objective is to ensure that every community reaps the benefits and that individuals across the country can seize the opportunities this transition presents.
This role is not merely abstract; it is deeply rooted in the lives of people and the places they inhabit. This focus aligns perfectly with the Prime Minister’s agenda for reindustrialisation.
Revitalising Communities Through Energy Transition
The energy sector supports countless communities across the UK, and for far too long, industrial decline has eroded the very fabric of these areas. As we shift from fossil fuels to clean, homegrown energy sources, it is essential to clarify our goals.
We are striving to maintain our independence, reduce our dependency on authoritarian regimes and oil-rich states, and rebuild our industrial prowess. This transition aims to create quality jobs and restore opportunities in every corner of the country, ultimately fostering a world-leading British economy that is prepared for future challenges.
Carbon capture, utilisation, and storage (CCUS) will be pivotal in achieving these objectives. This sector underpins some of our most strategically significant industries, including cement, chemicals, refining, and low-carbon power generation, enabling them to remain competitive in a carbon-constrained global market.
CCUS facilitates the decarbonisation of existing industries, safeguards foundational sectors, and creates a fertile ground for the emergence of new low-carbon products and services. The engineering capabilities, project delivery expertise, offshore infrastructure, and technical skills honed over decades in the North Sea are all directly applicable to carbon capture, transport, and storage.
Creating New Opportunities for Growth
From decarbonised cement to innovative low-carbon industrial products, CCUS is unlocking opportunities throughout our industrial heartlands, ensuring these regions have a stake in the industries of the future. It also opens new markets and supply chains, attracting private investment into these vital areas.
It is crucial to recognise that CCUS is not solely an industry unto itself; it is a catalyst for broader industrial growth. This is the central point I wish to emphasise today. Carbon capture is not an end in itself. The infrastructure we develop—pipelines, capture facilities, and storage sites—holds significance not just for their own sake, but for the broader capabilities they enable.
By facilitating the decarbonisation of existing industries, producing goods that the world requires, and, most importantly, generating meaningful jobs, we can restore opportunities in communities across the nation. This, to me, represents the true prize we seek to achieve.
Addressing the Challenges of Reindustrialisation
When we discuss reindustrialisation, it may sometimes seem like a vague concept, more suited to economic strategies or government reports. Yet, it encapsulates the lived experiences of millions in this country, many of whom have been left behind, with opportunities dwindling and individuals relocating in search of decent employment.
Young people grow up in communities they cherish, surrounded by family and friends, yet when it comes time to forge a career, they often feel compelled to leave. This is not necessarily a choice born from desire, but rather a reflection of the lack of secure jobs, training opportunities, and well-paid careers in their localities.
The departure of individuals from these communities results in a loss of skills, diminished spending power, and the absence of potential business founders, family raisers, and contributors to local life. Over time, this alters the identity of a place. Meaningful work transcends mere financial compensation; it provides purpose and independence, allowing people to plan for the future and ensuring families find security.
Reviving Hope and Opportunities
When industries close, investment dwindles, and opportunities migrate elsewhere, the repercussions extend beyond economic loss. The resulting decline can damage community confidence, erode the belief that a prosperous future belongs to them, and weaken the social fabric of the area.
This pattern has been evident in former mining towns, historic manufacturing hubs, and communities built around steel, chemicals, oil, gas, and engineering industries. I have the honour of representing a shipbuilding community in Parliament, yet I am the first generation in my family not to work in the shipyards or associated trades, primarily due to the dwindling job opportunities.
In the late 1950s, approximately 10,000 individuals in my community were employed in shipbuilding. Today, that figure is anticipated to drop below 200. As the decline set in during the 1970s and 1980s, the new jobs promised materialised as call centre roles and semiconductor manufacturing positions, most of which vanished in the 1990s and early 2000s.
Shaping the Future of Local Economies
The government’s current focus is on rectifying this damage. These communities once powered our nation, contributing to Britain’s wealth and generating the skills and expertise that underpinned our national success. Yet, far too many of these areas were left without a serious plan as their industries waned.
Investment shifted elsewhere, and the government adopted a hands-off approach, leaving communities to grapple with economic changes on their own. This administration does not accept that status quo. We have a responsibility to shape the economy, collaborate with industries, invest strategically for the long term, and build the infrastructure necessary for businesses to thrive.
It is imperative that economic transformations occur in tandem with communities, rather than imposing change upon them. The areas we are proud to call home deserve revitalisation, crafted by the individuals who best understand their needs.
Building Industries of the Future
Reindustrialisation is not about recreating the economy of yesteryear; it is about establishing the industries of the future in locations equipped with the skills, experience, and ambition to lead. This philosophy underpins my role as Minister for Local Energy and Jobs. The two components of this title are inherently linked: local energy and local jobs.
The success of the clean energy transition hinges on individuals perceiving its positive impact on their lives. They must see quality jobs being created, investment funneling into their communities, local businesses securing contracts, and young people accessing apprenticeships. Communities should feel they have a genuine stake in the economic transformation occurring around them.
Strengthening Local Supply Chains
My role extends beyond merely supporting projects; it involves ensuring those initiatives truly benefit people and places. This entails fortifying local supply chains, empowering engineering firms to secure new contracts, invest in new capabilities, and pursue long-term growth. We must assure experienced workers that their decades of acquired skills will be invaluable in the industries we are establishing today.
Moreover, we must instil confidence in businesses that the UK is committed to providing the infrastructure, skills, and long-term stability required for industrial investment. This approach builds upon our existing strengths, making it clear that CCUS is not just essential for achieving net zero, but also central to the government’s reindustrialisation agenda.
Realising the Potential of CCUS
The clusters we are developing demonstrate our capacity to deliver on these ambitious goals. The significance of CCUS extends beyond merely capturing carbon; it is about the possibilities that such infrastructure enables. When we discuss pipelines and storage networks, we must also consider the industries poised to connect to them—cement works, refineries, chemical plants, low-carbon power generation, and energy-from-waste facilities.
For instance, the project at Padeswood is not just about carbon capture at a cement facility; it represents the UK’s first carbon capture-enabled cement plant, securing the future of a pivotal industry. This initiative is about protecting an essential industrial site, the workers reliant on it, and the supply chains that have developed around it. Furthermore, it paves the way for a new generation of low-carbon construction materials, positioning British businesses to excel in future markets.
Addressing Emissions While Preserving Industry
In the realms of refining and chemicals, carbon capture provides a viable pathway for reducing emissions while retaining production and skilled employment within the UK. The alternative—shutting down British industry and importing identical products from abroad while pretending emissions have vanished—would not constitute genuine decarbonisation, but rather a form of deindustrialisation by another name.
This is why I perceive CCUS not merely as environmental infrastructure, but as economic infrastructure. We are making significant progress in constructing that infrastructure, collaborating with industry to secure five Final Investment Decisions.
In the East Coast Cluster, the Northern Endurance Partnership and Net Zero Teesside Power are working to establish a new low-carbon industrial heartland, supporting around 3,000 jobs during construction while providing secure, flexible low-carbon energy.
Fostering Local Economies and Future Investments
In the North West and North Wales, the Hy