National Wealth Fund Commits £28 Million to Peak District CO₂ Capture Project

The UK government is backing a major carbon capture initiative with a new £28.6 million investment. Energy Secretary Ed Miliband confirmed that the funding will go toward the Peak Cluster project, an ambitious effort that promises to benefit workers across Britain’s manufacturing heartlands.

Peak Cluster is focused on developing a new pipeline system that will collect carbon emissions from cement and lime factories in the Peak District. Instead of releasing those emissions into the atmosphere, the pipeline will transport them for permanent storage beneath the Irish Sea.

The funding comes from the National Wealth Fund, a £27.8 billion pot created by the government to accelerate investment in clean energy and other high-growth sectors. The aim? To spark additional backing from private investors and help drive the UK’s transition to a low-carbon economy.

This isn’t just public money at work. The Treasury has confirmed that the private sector is also contributing £31 million to the project. Peak Cluster marks the first carbon capture investment from the National Wealth Fund since Chancellor Rachel Reeves identified carbon capture as one of the fund’s top priorities earlier this year.

The Chancellor said: “We’re modernising the cement and lime industry, delivering vital carbon capture infrastructure and creating jobs across Derbyshire, Staffordshire and the North West to put more money into working people’s pockets.”

Energy Secretary Ed Miliband described the investment as a “landmark” that could help “deliver thousands of highly skilled jobs”.

“Workers in the North Sea and Britain’s manufacturing heartlands will drive forward the country’s industrial renewal, positioning them at the forefront of the UK’s clean energy transition,” he added.