HyNet to proceed after Prime Minister’s £2bn backing

Construction on the HyNet pipelines, a critical aspect of the Liverpool Bay carbon capture storage project, can now start after the government and Eni shook hands on a deal for the first slug of public cash.

Eni is the driver behind the Liverpool Bay CCS project, a complex network of pipelines transporting carbon dioxide emissions from the North West industries to be sequestered underneath the Irish Sea.

HyNet was set in full motion in October 2024, when the government announced it would get a share of a £22bn government investment.

Now, Whitehall has signed off the award of £2bn of that wider allocation so Eni can kickstart the project. The government hopes that HyNet will be operational by 2028 and hit its 2030 clean power ambitions.

Ed Miliband, secretary of state for energy security and net zero, said the government was keeping its promise “to launch a whole new clean energy industry” for the nation.

He added: “This investment from our partnership with Eni is [the] government working together with industry to kickstart growth and back engineers, welders, and electricians through our mission to become a clean energy superpower.”

HyNet’s expected beneficiaries include Heidelberg Materials, Encyclis, Viridor, and EET Hydrogen, and local businesses are set to win the majority of the £2bn supply chain contracts on offer.

In January, Essar appointed Turkish contractor ENKA to deliver the low carbon hydrogen production plant at EET’s Stanlow Manufacturing Complex in Cheshire, a key part of the HyNet network.

During initial construction, the carbon capture project could create more than 2,000 direct jobs.

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David Parkin, chair of the HyNet Alliance, said: “HyNet positions North West England and North Wales as global leaders in low carbon growth, attracting investment, boosting skills, creating and protecting jobs.

“We are delighted that Eni has reached financial close for HyNet’s carbon capture and storage network – an important milestone in turning the wider HyNet vision into reality.

“This progress strengthens the region’s industrial future whilst building a cleaner, stronger future for our communities.”

HyNet has a range of North West partners, including Progressive Energy, Cadent, and CF Fertilisers.