Government backs Peak Cluster carbon capture plan

Holcim UK has welcomed a major funding commitment from the National Wealth Fund to support the Peak Cluster, a carbon capture and storage (CCS) project aiming to decarbonise 40% of the UK’s cement and lime production.

The £28.6 million investment will help progress the cluster to the next development phase, including detailed engineering and consent processes. The project, led by Progressive Energy, brings together Holcim UK, Breedon, Tarmac and SigmaRoc—operators of cement and lime plants in Derbyshire and Staffordshire.

This includes Holcim’s cement plant in Cauldon, Staffordshire, which employs over 140 people and has a production capacity of up to 1 million tonnes per year.

The Peak Cluster aims to capture and permanently store three million tonnes of CO₂ annually from 2032, accounting for a quarter of the area’s current emissions. The carbon will be transported via pipeline to disused gas fields under the East Irish Sea, operated by Morecambe Net Zero (MNZ).

The move is part of a broader effort to reach net zero across the construction sector. “At Holcim we are determined to make sustainable construction a reality, but the only way we can truly achieve this is through the implementation of carbon capture and storage,” said Lee Sleight, chief executive officer of Holcim UK.

“This will significantly decarbonise our manufacturing process, and ultimately enable us to produce near-zero cement and concrete—products that are the foundation of the UK’s economy.”

The government investment is part of a wider £59.6 million equity raise that includes backing from Summit Energy Evolution Ltd through a joint venture vehicle, Progressive Energy Peak Ltd.

John Egan, chief executive of Peak Cluster, said: “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.”

The cluster is expected to safeguard over 2,000 jobs and create 1,500 more during construction and operation. Wider benefits could see up to 13,000 roles supported across the Midlands and North West through both Peak Cluster and MNZ.

The announcement adds to Holcim’s global CCS portfolio, which currently includes seven major projects across Europe.