Contribution
I am grateful for today’s Adjournment debate on the proposed carbon capture and storage project Peak Cluster, and the implications it could have for communities, landowners, farmers and the countryside across Cheshire and neighbouring counties. The proposed pipeline route cuts through my Chester South and Eddisbury constituency, and so directly impacts constituents in the wards of Christleton and Huntington, Bunbury, Tattenhall and Tarporley.
I have been inundated with correspondence from local people raising significant concerns. I have launched a local survey to gather views, and have received hundreds of responses, which are overwhelmingly in opposition to the project. I will share those concerns to ensure that the voices of people in Chester South and Eddisbury are heard, and will set out why I oppose the Peak Cluster pipeline project.
Let me take a moment to explain what this debate is not about. I am not opposed to reducing emissions, investing in and developing new technology to decarbonise and protect our environment, or making British industry and energy-intensive sectors such as cement and lime production more carbon efficient. However, there is a right and a wrong way to do that, and this must not be done to the detriment of communities across Cheshire, the British taxpayer, who will ultimately foot the bill, or our countryside and rural landscape, which are central to Cheshire’s identity. Nor should it be to the detriment of the sectors, particularly agriculture, that we rely on in our local economy. I will touch on these matters in explaining why the project is the wrong choice for Cheshire.
First, it would be useful for me to lay out some of the facts and figures around the project, so that the House better understands what we are talking about. The Peak Cluster project is a proposed carbon capture and storage scheme that is designed to capture carbon dioxide emissions from cement and lime works across Derbyshire and Staffordshire. Carbon dioxide would be captured at industrial sites, compressed, and transported through around 200 km of pipeline running through parts of Cheshire and neighbouring counties, before being sent offshore for permanent storage in depleted gas fields beneath the Irish sea.
On a very simple level, that is what this project is about, and theoretically it sounds positive. Carbon capture and storage will have a part to play in the decarbonisation of industries. Some argue that the project will save the cement and lime production industry, and ultimately help to make the UK greener. Those are noble causes with which I can agree in principle. However, for too long, we have taken a theoretical, hypothetical and ideological approach to reducing emissions, at the cost of energy security, economic growth and the bills that people pay. Through this debate, I will demonstrate that the costs of the project significantly outweigh the benefits. A project on such an enormous scale and of such consequence must not move forward while fundamental questions remain unanswered.
Let me turn to the economics of the project. Peak Cluster was established several years ago and became a limited company following significant investment in 2025. We are told that around £60 million has already been committed to bringing the project to its current stage, including substantial support from the National Wealth Fund, contributions from cement and lime producers, and investment from overseas infrastructure interests; yet we are also told that delivering the project could ultimately require investment in the region of £5 billion. That is a seriously significant amount of capital. As we know from previous national infrastructure projects, that will almost certainly not be the final total bill. It will grow. The cost will spiral, and ultimately the timeline will extend—and who will pay for this? It will be the taxpayer who ultimately foots the bill.
At a time when every area of public expenditure is rightly subject to scrutiny, when energy bills are already soaring, and when public finances remain under pressure, we should be asking hard questions about whether this represents the best and most effective route to decarbonisation. I would argue that it does not. The business model appears heavily dependent on carbon pricing mechanisms and Government policy. Indeed, the fundamental incentive for producers to pay for carbon capture and storage rests upon the existence of carbon costs, which make emitting carbon dioxide increasingly expensive. That raises a number of important questions that I hope the Minister can help with in his remarks. What assumptions have been made about future carbon prices? Is the project economically viable at today’s carbon price, or does it depend upon the hope that the price will rise significantly over time? What assessment has been made of the risks, should future Governments alter or repeal elements of the emissions trading framework? Perhaps most importantly, what is the total potential expenditure for taxpayers?
My constituents deserve a clear and straightforward answer on that point because, ultimately, what does Cheshire gain from this project? The carbon dioxide is not being captured in Cheshire; the cement and lime works are not located in Cheshire; and the principal industrial benefits are not accruing to Cheshire. No jobs will be created and no industry will be brought to Cheshire, yet Cheshire’s communities, farmers, landowners and countryside are expected to accommodate a substantial amount of infrastructure required to make the project possible. That understandably raises questions about fairness and whether the balance between costs and benefits has been properly considered. It will be for the Secretary of State, ultimately, to make the final decision on this project, and I hope that when he does, he will consider closely the impacts for Cheshire.
Peak Cluster’s supporters argue that the project will help preserve the UK’s cement and lime industries, safeguard industrial jobs and contribute towards our net zero ambitions. Those are serious objectives and deserve to be taken as such. Of course, Cheshire is a patriotic county, and we would not be selfishly against the national interest; however, I do not think the project is clearly in the national interest. There is a broader strategic question: even if we accept the need to decarbonise cement production, and I do, are we investing in the right solution?