Prime Minister Sir Keir Starmer visited the Encirc glassmaking business near Ellesmere Port on Friday, October 4, as he announced £22 billion of funding for two carbon capture sites in the UK.

Major businesses in the Ellesmere Port area have backed the announcement, as they will form part of the HyNet decarbonisation strategy which sees emissions from burning fuels for energy or from industrial processes being collected and stored underground, such as in disused oil fields under the sea.

Italy's oil and gas giant Eni has welcomed the funding, which will be used at its Liverpool Bay, where it plans to store 10 million tonnes of CO2 per year after 2030. The CO2 will come from the Protos Energy Recovery Facility (ERF), which is being built by Encyclis and Biffa, near the Encirc site.

Prime Minister Sir Keir Starmer during a visit to Encirc in Ellesmere Port.

Prime Minister Sir Keir Starmer during a visit to Encirc in Ellesmere Port.

Speaking at the Encirc factory, The Prime Minister – who was joined on the visit by Chancellor Rachel Reeves and Energy Secretary Ed Miliband – said: “This is a technology that’s now arrived, that is ready with this investment to scale.

“But it is just the start. I’ve always believed that clean energy is a golden opportunity for our country, a chance to bring security and hope to working people, relight the fires of renewal in those areas that got hit so hard by deindustrialisation.”

Sir Keir said there is a “global race to get ahead”, adding: “I’m really pleased that we’re putting ourselves in a position not just to be in that global race, but to win that global race and that’ll be measured in thousands of jobs for literally decades to come.”

Prime Minister Sir Keir Starmer (left) during a visit to Encirc in Ellesmere Port.

Prime Minister Sir Keir Starmer (left) during a visit to Encirc in Ellesmere Port.

Among the big businesses welcoming the announcement are EET Hydrogen, a division of Stanlow refinery owners EET, which is developing a low carbon hydrogen production hub there. The hub is to produce 1,350 MW of hydrogen capacity in total and capture around 2.5 million tonnes of carbon per year, significantly reducing emissions being released into the atmosphere.

Tony Fountain, managing partner of EET said: “Fantastic to see the Government moving forward with the HyNet cluster, at the heart of which is our first low carbon hydrogen production plant at Stanlow, creating jobs and growth in the North West.

"Now that Government support is confirmed, we look forward to taking our final investment decision and starting construction in 2025.”

Encirc produces over three billion glass containers every year and caters to some of the world’s most prominent drinks brands.

Managing Director Sean Murphy said: “Encirc was delighted to have played host to the Prime Minister, Chancellor and Energy Secretary at our facility today.

“The government’s announcement is a huge step forward for sustainable manufacturers like ourselves, and will help support the journey towards the production of billions of low carbon glass bottles and jars for global food and drinks brands across the UK.

“As a business with sustainability at its core, Encirc has been a longtime innovator in finding ways to reduce our carbon footprint, both on the manufacturing process as well as in logistics and supply chain.

“We look forward to working with UK Government on a range of issues to ensure that the right conditions are in place to enable the sort of inclusive green growth that benefits everyone across society.”

James Richardson, acting chief executive of the Climate Change Committee, said: “It’s fantastic to see funding coming through for these big projects.

“We can’t hit the country’s targets without CCUS so this commitment to it is very reassuring.”

But Greenpeace UK’s policy director, Doug Parr, said £22 billion “is a lot of money to spend on something that is going to extend the life of planet-heating oil and gas production”.

Shadow energy secretary Claire Coutinho said: “Exceptional local leaders like Ben Houchen have worked on this for years and it’s thanks to the Conservatives that funding was already announced for these projects in the spring of 2023."

While he acknowledged it was vital the Government committed to industrial investment and job creation while tackling the climate crisis, “it needs to be the right sort of industries”.