The £166.5 million funding package announced today will develop technologies in carbon capture, greenhouse gas removal and hydrogen, while also helping find solutions to decarbonise the UK’s polluting sectors including manufacturing, steel, energy and waste.

The investment, awarded to innovators, businesses, academics and heavy industry right across the UK, will accelerate the delivery of the critical game-changing technologies needed to further drive Britain’s climate change ambitions, while creating over 60,000 jobs across the UK.

This significant investment will help the UK meet its ambitious climate commitments, including reaching net zero emissions by 2050 and the world’s most ambitious climate target of reducing UK emissions by 78% by 2035 compared to 1990 levels.

Welsh Projects receiving funding include:

• Professor Christopher Evans, UK Centre for Ecology and Hydrology is being backed with almost £4.5 million to manage and restore peatlands to maximise their greenhouse gas removal potential at farmland near Doncaster, and at upland sites in the South Pennines and in Pwllpeiran, West Wales. Peatlands store more carbon than any other ecosystem on land, but as a result of human disturbance they are rapidly losing this carbon to the atmosphere. This project will re-create, and where possible enhance, the environmental conditions that lead to peat formation, and to re-establish a secure long-term carbon store in the landscape.
• Celsa Manufacturing, Cardiff, will receive £3 million to install new technologies to reduce emissions and improve energy efficiencies in the process to melt scrap metal and produce steel. Further, this project could increase domestic scrap processing and production of steel in the UK, reducing the next to import materials from around the world – lowering the country’s carbon footprint.
• BAE Systems, Glascoed, has been awarded over £82,000 to incorporate energy efficient technology that replaces a steam heating system at the company’s Glascoed site. The project aims to reduce energy consumption and the company’s carbon footprint by up to 25%, saving the equivalent annual emissions of approximately 700 households.

Secretary of State for Wales Simon Hart said:

“This is yet another fantastic example of how Welsh businesses are leading the way in building a net-zero economy.

“Thousands of jobs will be created as a result of this investment and that is fantastic news for communities such as Pwllpeiran and Glascoed who are receiving funding today.

“As we build back better and greener from the pandemic, Wales will play a crucial role as a centre for innovation and green industries of the future.”

Energy Minister Anne-Marie Trevelyan said:

“We are determined to tackle climate change and make it win-win for both our planet and our economy. Today’s major cash boost – targeted at our most polluting industries – will encourage the rapid development of the technologies we need to reign in our emissions and transition to a green economy, one that reduces costs for business, boosts investment and create jobs.

“Just six months ago, the Prime Minister set out a clear 10 Point Plan for creating and supporting up to 250,000 British jobs as we level up and build back greener from the pandemic. Today we’re boosting our armoury for the fight against climate change and backing innovators and businesses to create green jobs right across the United Kingdom.”