The UK's National Wealth Fund has announced a £28.6m equity investment in Peak Cluster Ltd to support the development of a planned carbon dioxide transport pipeline.
The investment is the cornerstone of a £59.6m equity raise, which also includes investment through a joint venture vehicle between Summit Energy Evolution Ltd (part of Sumitomo Corporation) and Progressive Energy Peak Ltd, as well as each of the Peak Cluster cement and lime producers: Tarmac, Breedon, Holcim and SigmaRoc.
The UK government plans for the Peak Cluster pipeline to sit at the heart of a full value chain carbon capture and storage (CCS) network. Spirit Energy is currently converting its Morecambe gas fields in the East Irish Sea to create the UK’s biggest carbon dioxide (CO₂) store. The Peak Cluster pipeline will transport CO₂ emissions captured on its industrial plants across Derbyshire and Staffordshire to be stored by Morecambe Net Zero.
The UK government has pledged nearly £22bn in support for CCS projects to be awarded over the next 25 years, with the Peak Cluster investment marking the first pledge to the new technology.
While corporations in hard-to-abate sectors have come out to support the technology, institutional investors have so far approached CCS with caution. Among the early backers is the Canada Pension Plan Investment Board (CPPIB) through its investments in the Alberta Trunk Pipeline.
