Chancellor of the Exchequer, Jeremy Hunt, has announced an investment of £20 billion to ‘clean up’ the UK’s domestic energy supply and secure energy security in the Spring Budget.

The move will see £20billion invested over the next 20 years to drive forward projects that aim to store 20-30 million tonnes of CO2 per year by 2030.

One project, the £1.5billion Net Zero Teesside scheme, is set to be constructed on 150 acres of the Teesworks site. Backed by a consortium of energy companies led by bp, this would see the creation of the UK’s first fully integrated, commercial-scale gas-fired power station with carbon capture, utilisation and storage capabilities, paving the way to establish a fully decarbonised industrial cluster by 2040.

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As part of the East Coast Cluster, the scheme has been named by Government as the UK’s premier net zero project to lead the country’s low-carbon ambitions. It could provide enough power for up to 1.3million homes while capturing up to 2million tonnes of CO2 emissions a year. This would be transported and securely stored under the North Sea.

Welcoming the news, Tees Valley Mayor Ben Houchen, said: “Delivering new industrial green technology is the only way we are going to meet our 2050 target, no ifs no buts.

“Whilst other areas do a lot of talking we are getting on and leading the charge across Teesside, Darlington, and Hartlepool.

“It has become clear that Net Zero Teesside is the most advanced energy project of its kind and is the jewel in the crown of the UK’s Clean Growth strategy.

“This commitment of £20billion from the UK Government was the last hurdle for the project getting spades in the ground and I’ll be pushing Government to make sure the Net Zero Teesside project is selected immediately so that we can get on, deliver energy security and create the jobs of the future.

“The project will deliver 5,500 jobs in construction and hundreds more in the long term. Not only will Net Zero Teesside be an environmental game changer, but it will deliver billions of pounds of investment and thousands of good quality local jobs for Teesside. This is what we promised, and we are ready to deliver.”