© Supplied by EET Hydrogen The UK government has outlined support for a range of nuclear energy, hydrogen and carbon capture and storage (CCS) projects in the North West of England as part of its spending review.
Industry groups across the region welcomed the spending, saying it would lead to jobs and investment growth while providing opportunities for local supply chain firms.
Energy Voice takes a look at what the spending review means for the UK energy sector in the North West of England.
Nuclear energy
Earlier this week, Chancellor Rachel Reeves outlined a significant increase to nuclear spending, including investments in Sizewell C, small modular reactors (SMRs) and nuclear fusion.
As part of the announcement, the government confirmed Manchester-based Rolls-Royce SMR as the preferred bidder for a £2.5 billion programme to build small modular reactors (SMRs).
The deal could see Rolls-Royce build up to three factory-produced miniature nuclear power plants in a first for the UK.
The company has identified several potential sites for SMR deployment, including Wylfa and Trawsfynydd in North Wales, Sellafield in Cumbria and Oldbury.
Energy Secretary Ed Miliband said the investment would mark a “golden age” of nuclear to boost the UK’s energy security as well as create 10,000 jobs.
North West set to ‘benefit significantly’ from nuclear spend
The Northern Nuclear Alliance (NNA) trade body, which boasts more than 60 members across the North West, said the region is set to “benefit significantly”.
According to the NNA, the North West boasts the highest concentration of nuclear expertise, test facilities and employment in the UK, with the sector directly employing 29,000 people in the region.
© Image: Rolls Royce SMRThe NNA also said the £14.2bn investment in the Sizewell C reactor in Suffolk would benefit North West supply chain firms over the next 15 years.
“This investment will not only secure clean, reliable power for millions of homes but will also boost critical supply chains, benefiting thousands of British businesses,” the NNA said in a statement.
NNA chair Rachel O’Donnell said the government has demonstrated a clear commitment to a “bold nuclear future, recognising the essential role nuclear plays in the UK’s energy strategy”.
“The NNA and our 60-plus member organisations across the North West look forward to supporting both Sizewell C and the UK’s wider nuclear ambitions, by leveraging our world-class nuclear supply chain and full nuclear life cycle pedigree,” O’Donnell said.
“Together, we will ensure the UK continues to lead globally in nuclear innovation, job creation, and energy security.”
Carbon capture and storage
The spending review also confirmed £9.4bn for carbon capture, utilisation and storage (CCUS) programmes until 2029.
The funding includes support for the track-1 HyNet and East Coast Clusters, alongside development support for track-2 projects in Scotland and the Humber.
Net Zero North West (NZNW) chief executive Jane Gaston welcomed the CCUS funding, which aims to “maximise deployment to fill the storage capacity” of track-1 projects.
“This is a sign of the government’s commitment to decarbonisation that we in the North West continue to lead with our pioneering industrial decarbonisation projects,” Gaston said.
© Supplied by HyNetGaston said CCUS will “secure thousands of skilled jobs and decarbonise critical industry” in “industrial heartlands” such as the North West.
“As [the Chancellor] rightly points out, “where things are made and who makes them, matters”, Gaston added.
“The announcement gives confidence to the supply chain to invest in meeting infrastructure demands.”
Hydrogen
The North West Hydrogen Alliance (NWHA) also welcomed the “renewed backing of the industrial clusters” contained in the spending review.
NWHA chair Dave Richardson said the government had shown “continued recognition of hydrogen as a critical component of the UK’s clean energy future”.
Alongside its CCS component, the HyNet cluster includes a range of hydrogen initiatives that aim to decarbonise heavy industry in the region.
Gas distribution network operator Cadent is developing the UK’s first 100% hydrogen pipeline as part of HyNet, which will transport low-carbon hydrogen produced by EET Hydrogen at the Stanlow refinery to various industrial offtakers.
EET has also installed a hydrogen-ready furnace at the refinery complex in Ellesmere Port in Cheshire – a first for the UK.
© Supplied by EET HydrogenRichardson said that, with the right government support, the HyNet cluster could enable a low-carbon hydrogen economy “at scale across the North West”.
“We encourage the government to ensure that there is a clear, long-term framework for hydrogen deployment across all regions, including the North West,” Richardson said.
“This must include timely access to funding, support for end-use applications, and a joined-up approach to infrastructure planning.
“The North West stands ready to deliver clean growth, energy resilience and skilled jobs.”
