SIX projects across the UK will today receive a share of £8 million in Government funding as part of a drive to create the world’s first net-zero emissions industrial zone by 2040.

The funding will be used to develop ways to cut carbon emissions from major industries – helping safeguard the thousands of jobs that depend on the chemical and process sector in Teesside.

The new cash is the latest phase of the Government’s £170 million Industrial Decarbonisation Challenge which has the potential to create tens of thousands of jobs.

The announcement is the latest boost to the region as it pushes ahead with key projects that will help the Government meet its commitment to net zero emissions by 2050.

A net zero industrial zone will see all industries in a region collectively reducing their carbon dioxide emissions to as close to zero as possible using low-carbon energy sources and new technology like carbon capture.

Key to delivering the ambitious target is Net Zero Teesside, the world’s first industrial scale Carbon Capture Utilisation and Storage facility, Net Zero Teesside will transform a huge part of the former Redcar steelworks and create over 5,000 good-quality well paid jobs for local workers.

In November last year Net Zero Teesside was one of two carbon capture schemes that won a share of £200m from Government.

Developed by a consortium made up of some of the biggest energy companies in the world – including BP, Shell and Total – the project will deliver the UK’s first decarbonised industrial cluster by 2030.

Once operational Net Zero Teesside will capture up to six million tonnes of carbon dioxide per year, the equivalent to the annual energy used by two million homes. This carbon dioxide will then be transported via pipeline to be stored in sites under the North Sea, with the potential for it to be reused in a range of other industrial processes.

Teesside, Darlington and Hartlepool are also playing a huge role in the development of hydrogen as an alternative fuel.

In September, Tees Valley Mayor Ben Houchen secured agreement from the Government to create the UK’s first Hydrogen Transport Centre on Teesside.

The centre, the first of its kind in the UK, will result in the research, development and testing of new hydrogen technologies, including for cars, buses, trains, lorries, boats and planes taking place on Teesside, where more than half of the UK’s hydrogen is already produced.

The Hydrogen Transport Centre will sit alongside the new Tees Valley Net Zero Innovation Centre, established by Mr Houchen with £14 million in funding. It will be built next to TWI in Middlesbrough in partnership with Teesside University to form a new innovation campus focused on clean energy research and development.

Mr Houchen said: “From offshore and hydrogen to carbon capture, the region is at the forefront of developing the critical technologies that we will need if we are to meet the ambitious targets to be carbon neutral by 2050.

“Hydrogen and Net Zero Teesside aren’t just a key part of my plan for jobs but they will create the clean jobs which are essential for our future."

“Industry across the region emits 8.8 million tonnes of CO2 a year, so it is crucial that we develop the technologies to decarbonise these hugely important businesses, that’s why I was so pleased to be able to bring Net Zero Teesside to the region – a project that could have gone anywhere in the world.

“Teesside has led the world in steel manufacturing and engineering and chemical processing for generations. Now we are a trail blazer for the jobs of the future.”

Energy Minister Kwasi Kwarteng said: “The UK is leading the world’s green industrial revolution, with ambitious targets to decarbonise our economy and create hundreds of thousands of jobs.

“As we continue to level up the UK economy and build back greener, we must ensure every sector is reducing carbon emissions to help us achieve our commitment to net zero emissions by 2050.

“This funding will help key industrial areas meet the challenge of contributing to our cleaner future while maintaining their productive and competitive strengths.”

Decarbonising UK industry is a key part of the Government’s ambitious plan for the green industrial revolution, which is laid out in its Ten Point Plan and Energy White Paper and is set to create 220,000 jobs as we build back greener over the next decade.