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The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
I begin by congratulating the hon. Member for Birkenhead (Mick Whitley) on securing this important debate. I assure the House that this Government are ensuring that we have an energy system that delivers a cleaner and greener future. We are determined that every place, every community and every industry in the UK, including of course the north-west, has the support it needs to successfully transitioned to green energy.
We only need to look at what happened with coal and wind in the last few decades and the political consensus that has formed around reducing our emissions to see that the nation is embracing a move to green energy. Members have shared their passion and commitment to a just transition to net zero in this debate. The energy White Paper, which we published in December last year, set out plans for the historic transformation of the UK’s energy system for a cleaner future, including fully decarbonising our electricity generation by 2050. We have shown that rapid progress on decarbonisation is possible, alongside a thriving economy.
We recognise, of course, the need to ensure that industries move to clean energy in a sustainable way, which is why we have announced in recent years the industry strategy challenge fund, the industrial energy transformation fund and the clean steel fund. Those funds support the meeting of green energy goals in key industrial regional clusters and sectors. In addition to those funds, the Prime Minister’s 10-point plan for a green industrial revolution set out how we will work with industry to help deliver our net zero targets in a way that creates employment opportunities in green energies as they emerge. My hon. Friend the Member for Warrington South (Andy Carter) raised some important north-west leadership points in relation to nuclear, which were very interesting to hear, as it is a key low carbon part of our future energy mix.
In the 10-point plan, there is a commitment to deploy carbon capture usage and storage in at least two industrial clusters by the mid-2020s and a further two clusters by 2030, with an ambition to capture 10 megatonnes of CO2 per year by 2030. In May this year, we launched the first phase of the CCUS cluster sequencing process. On the concerns about other technologies of the hon. Member for Birkenhead and the hon. Member for Liverpool, Wavertree (Paula Barker), they will be pleased to know that allocation round 4 of the contracts for difference later this year will include less established technologies, including floating offshore wind, advanced conversion technologies and tidal stream. The delivery of at least two CCUS clusters is not the extent of the ambition, with a commitment to support four by 2030 at the latest. The Government are also clear that, in order to reach net zero, all industrial clusters will need to decarbonise and CCUS is going to play a key role in enabling that.
The industrial decarbonisation strategy and the forthcoming heat in buildings and net zero strategies will set out how targeted investment, underpinned by support for technology innovation, will help enable a more sustainable long-term path, while protecting jobs and supporting levelling up across the UK. I hope that will give my hon. Friend the Member for Vale of Clwyd (Dr Davies) and the hon. Member for Wirral West (Margaret Greenwood) reassurance on many of the transportation issues that were raised.
This debate gives us an opportunity to recognise the significant contribution the north-west has already made and plans to make to investing in green energy. I will take a moment to recognise a couple of those excellent contributions. Winnington in Cheshire will be home to the UK’s first industrial carbon capture and utilisation plant. The £15.7 million project will be funded by Tata Chemicals Europe, with the support of a £4.2 million grant from the Department for Business, Energy and Industrial Strategy through our carbon capture and utilisation demonstration programme. The plant is near completion and due to commence carbon dioxide capture operations this year.
The hydrogen energy and carbon capture and utilisation storage project, HyNet North West, which many colleagues mentioned, is an innovative low carbon and hydrogen energy project that will unlock a low carbon economy for the whole of the north-west and north Wales, and put the region at the forefront of the UK’s drive to net zero. The project will receive almost £33 million of funding from the industrial decarbonisation challenge, and will be important for our efforts to decarbonise industry in support of the Government’s wider net zero ambition. I am really looking forward to my visit to HyNet North West later in the summer. I would be happy to meet the hon. Member for Denton and Reddish (Andrew Gwynne) to learn more about the geo-engine technology, when my diary allows.
Finally, since 2015, Electricity North West has spent £33 million on innovation projects which have already delivered £46 million of benefit to consumers across the north-west. I am sure hon. Members agree that these kinds of bold and innovative investments, such as those happening in the north-west, will be vital to positioning the UK as global leader in the future energy industry. This Government are absolutely committed to working closely with communities and industry to enable that transition to green energy.
The hon. Member for Westmorland and Lonsdale (Tim Farron) will be pleased to read the heat and buildings strategy when it is published soon, as it will answer some of his questions. I am sorry, Mr McCabe, but I am still quite excited that I brought carbon budget 6 into law yesterday and signed the legislation this afternoon, which means that we are genuinely world-leading in the challenge that we have set ourselves. When we publish the first net zero strategy of any country in the world in the autumn, we will be genuinely demonstrating our world-leading effort to get to net zero by 2050. That will be achieved through creating green jobs, targeting investment and supporting the innovative technologies that we are seeing across the north-west and across the UK, which will help us to achieve a cleaner and greener future for us all.