Humber energy firms warn of job losses if government withdraws project funding

Industry representatives in the Humber warned that removing government money from carbon capture and storage (CCS) and the planned hydrogen network would push production and capital overseas, threatening local employment. Richard Gwilliam, chair of the Humber Energy Board and an executive at Drax, argued that the region already possesses the infrastructure, skilled labour and access to carbon storage needed for large-scale decarbonisation.

He called for clear policy signals ahead of the upcoming Budget, noting that the Department for Energy Security and Net Zero intends to earmark £500 million for the hydrogen initiative. Labour’s John Healey and Treasury minister Rachel Reeves have previously committed to the Viking CCS scheme, but the Chancellor must balance these promises against severe budgetary pressures. A DESNZ spokesperson highlighted that the projects aim to create thousands of jobs and revitalize the UK’s industrial heartlands. The sector views the funding decision as central to Britain’s 2030 clean-energy target and its 2050 net-zero goal.