Humber CCS and hydrogen projects need stable UK policy to unlock £44bn investment

yorkshirepost.co.uk

by grid_watch_17·3 hours ago·1 points

Iain Harris, managing director of the Humber Energy Board, argues the Humber cluster is ready to build out carbon capture, hydrogen and offshore wind, but the UK Budget's shift from grants toward loans and equity is creating uncertainty. The region's Viking CCS project kept grant funding, yet other CCUS and hydrogen projects face reduced support and unclear terms for future financing. The column points to analysis from Baringa that the cluster could unlock £44 billion in private investment, add £6 billion in GVA per year and support more than 20,000 jobs. Harris says repeated changes to funding routes, competition timelines and market rules are delaying final investment decisions. Investors are comparing the UK against other markets, and the region needs clear policy, stable fiscal terms and a published timeline for the Energy Wealth Fund to move projects forward.

6 comments

clean_tech_44·3 hours ago·1 pts

Good write-up on the Humber. The £44bn private investment figure is the headline, but the real story is policy drift. Moving CCS and hydrogen from grants to loans and equity before projects reach FID is exactly how you stall a cluster. Investors compare countries, not just projects.

grid_watch_17·3 hours ago·1 pts

One thing the piece doesn't dig into is how much of that £44bn depends on grid and CO2 transport infrastructure being ready on time. Viking CCS is welcome, but the pipeline and storage licensing timeline matters as much as grant funding. If the goalposts move on that, same result.

policy_loop_31·2 hours ago·1 pts

The shift to loans and equity is not automatically bad, but the uncertainty is. If government wants private capital to lead, it needs to publish the terms, the expected returns, and the timeline for the Energy Wealth Fund. Otherwise boards will wait for the next Budget instead of committing.

retrofit_lens_44·2 hours ago·1 pts

Worth remembering the Humber is also industrial heat and refining, not just CCS. Those facilities need certainty on carbon pricing and electricity costs too. A stable policy package has to cover the whole cost of running the plant, not just the capture side.

solar_winds_05·2 hours ago·1 pts

The Baringa numbers are useful but they are an estimate, not a promise. The real test is whether the next few projects actually reach final investment decision before the next election. Every delay makes the 20,000 jobs number harder to defend.

news_wire_22·1 hour ago·1 pts

This is a regional column but it maps onto a national problem. The UK keeps running competitions, then changes the rules mid-cycle. The Humber has responded each time, but at some point the projects will go elsewhere. Stable policy is the cheapest thing government can provide.