Hydrogen, carbon capture, freeports and offshore wind proposals for the Humber have all been listed as infrastructure projects to be ‘accelerated as fast as possible’ by the Chancellor.
The East Coast Cluster - which brings together huge regional decarbonisation projects for industrial zones in both Humber and Tees - is flagged for fuel switching and the sequestering of CO2, when it comes to Kwasi Kwarteng’s The Growth Plan 2022. So too is SSE Thermal and Equinor’s joint plan for Aldbrough Hydrogen Storage - which comes under the ECC umbrella. It builds on an existing gas facility that features nine underground salt caverns - each the size of St Paul’s Cathedral.
Offshore, remaining Round Three projects, Round Four projects and existing wind farm extensions are also highlighted, with Orsted’s Hornsea Four in planning and RWE’s Dogger Bank South and plans from Total Energies and Green Investment Group in development, all anchored off the Energy Estuary.
Read more: All the key points of the mini Budget
A staggering 86 road projects and 10 rail initiatives are also included, with Northern Powerhouse Rail and the A164 Jock’s Lodge junction improvement scheme between Hull and Beverley all listed.
The Treasury released the list within the publication of the 40-page plan, that was covered off in the Chancellor’s speech in the House of Commons.
It states the list “sets out infrastructure projects which will be accelerated as fast as possible, aiming to get the vast majority starting construction by the end of 2023”.
Further projects could also be brought in, and the department said the “projects may benefit from acceleration through planning reform, regulatory reform, improved processes or other options to speed up their development and construction, including through development consent processes”.
It has, however, warned that presence on this list “does not guarantee funding, planning consent or approval for other regulatory or permitting processes”.
Dan Sadler, vice president for UK low carbon solutions at Equinor, said: "We’re delighted to see the new Chancellor highlighting the national importance of hydrogen and carbon capture projects in not only ensuring widespread decarbonisation but also in stimulating the economy, attracting investment and creating jobs.
"The East Coast Cluster CO2 and hydrogen pipeline infrastructure is vital to unlocking multiple decarbonisation projects across the Humber, whilst Aldbrough Hydrogen Storage is essential in balancing energy supply and demand. These are transformative opportunities and the government is right to provide the certainty and stability required by investors to make them a reality.”
Chair of the Humber Energy Board, Richard Gwilliam, who is also head of cluster development at Drax, said: "It is welcome news today that the East Coast Cluster has been named one of the 'infrastructure projects which will be accelerated as fast as possible' in The Growth Plan. ECC will deliver CO2 infrastructure through the Humber enabling mass decarbonisation and a pathway to economic growth."
On wind, chief executive of trade body RenewableUK, Dan McGrail, said: “Speeding up the planning process for offshore wind is vital, as it will allow us to unlock an enormous amount of new capacity much faster and help us to meet the Government’s target of quadrupling our offshore wind capacity by 2030. It will also help us to meet the Prime Minister’s vision of the UK becoming a net energy exporter by 2040. At the moment it can take up to ten years to get a project over all the hurdles. “We can’t afford these glacial timescales any longer, especially as offshore wind has now reached a point where it’s even cheaper to build than onshore wind.
“It’s also vital that we speed up grid connections, as some offshore wind farms are being given connection dates which are 10 years into the future. Alongside the changes announced today, we’re urging Ofgem and National Grid to accelerate grid reform, as one of the most important steps towards decarbonising our power system in the years ahead.
“Overall, the Government’s Growth Plan could be a game-changer in speeding up the transition to low-cost renewable power. Companies plan to invest up to £175 billion in UK wind energy this decade, boosting growth and energy security."
Mr McGrail, who played an influential role in the delivery of Siemens Gamesa's Hull plant as part of the team there, also welcomed a removal on the ‘block’ on onshore turbines.
As reported, all Humber local authorities have expressed interest in the Investment Zones with Hull’s flagged in comments from Mr Kwarteng prior to him taking to the dispatch box.
Following the mini-budget, the Chancellor said: “To support growth right across the country, we must take intensive, targeted action. We will streamline planning rules in specified sites, accelerating development for growth and housing, and unlock job-creating infrastructure across Yorkshire and the Humber. And we will cut taxes, with businesses in designated sites enjoying the benefit of tax reliefs.”
Levelling Up Secretary Simon Clarke added: “We are taking decisive action to kick-start growth and deliver a more successful, dynamic economy that will benefit people across the whole United Kingdom. Locally-led Investment Zones will help us spread growth, prosperity and opportunity by lowering taxes and removing unnecessary barriers to enterprise and investment. This is a fantastic, radical offer for households and businesses that will create jobs, deliver new homes and unlock the potential of communities across the country.”
Labour has described the announcement-packed fiscal event as an admission of 12 years of failure from the governing Conservatives, with Mr Kwarteng having served in Energy and as Business Secretary under previous prime ministers and new Prime Minister Liz Truss ever-present in the Cabinet.
Cllr Philip Jackson, the Conservative leader of North East Lincolnshire Council, welcomed the investment zone announcement. He said: “Along with our other bids into the Levelling Up Fund, the potential benefits for North East Lincolnshire are huge, and would make our industrial sites even more attractive to investors.
“Thanks to the support from Government, we have already invested a huge amount in our business community, and have lots of businesses interested in what we have here. To have the tax benefits on a potential range of sites in North East Lincolnshire as well would be highly desirable for any investing business.
“We are looking forward to having productive discussions with Government in the coming weeks and months to try to secure that Investment Zone status and boost business growth and wages for local people."
Read next:
Round Four offshore wind projects to proceed in full as habitat assessments complete
£341m buy-out of Triton Power by SSE Thermal and Equinor completes
Humber carbon capture projects progress as FOUR shortlisted for further phase
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