NWF invests GBP28.6 mil in Peak Cluster to propel carbon capture

National Wealth Fund has announced a GBP28.6 million equity investment in the cement decarbonization project Peak Cluster Ltd., marking a pivotal step toward the development of a CO2 transport pipeline.

This investment is part of a larger GBP59.6 million equity raise, which also includes contributions from a joint venture between Summit Energy Evolution Ltd., part of Sumitomo Corp., and Progressive Energy Peak Ltd., along with key participants in the cement and lime sector including Tarmac, Breedon, Holcim and SigmaRoc, NWF said in a statement July 7.

"We are modernizing 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," Chancellor of the Exchequer Rachel Reeves said.

Once operational, the Peak Cluster pipeline is expected to be the backbone of a comprehensive carbon capture and storage network.

The pipeline will facilitate the transportation of CO2 emissions captured from industrial plants across Derbyshire and Staffordshire, ultimately directing them to be securely stored by Spirit Energy's carbon capture, utilization and storage project, Morecambe Net Zero.

"Peak Cluster is focused on securing a sustainable future for the cement and lime industry. Together with MNZ, the UK's biggest carbon store, we will capture, transport and store CO2 to support industry to thrive in a low-carbon future," said John Egan, CEO of Peak Cluster.

While cement and lime are integral to many UK industries, including construction and manufacturing, they remain the hardest sectors to decarbonize due to the substantial CO2 emissions produced during manufacturing.

With Derbyshire and Staffordshire generating 40% of the UK's cement and lime, the Peak Cluster project is essential for the sector's decarbonisation, NWF said.

"Capital must be committed now, especially in hard-to-abate sectors such as cement and lime, to ensure a pipeline of projects is ready for deployment and the UK is able to meet its ambitious carbon capture targets," NWF CEO John Flint said.

The funding from NWF will be directed toward advancing the pipeline project through to a final investment decision as early as 2028, encompassing the successful completion of front-end engineering and design and other studies crucial for the planning consent process.

Platts, part of S&P Global Energy, assessed CEMDEX Turkey at $54.5/mt FOB on July 3.