UK Government backs Castle Cement’s Padeswood carbon capture project

Castle Cement in Padeswood, and the Stanlow refinery in Ellesmere Port are among 25 businesses across the UK to receive grants from the UK government’s £52 million Industrial Energy Transformation Fund (IETF).

The funding is part of the government’s broader Plan for Change, aimed at decarbonising industry and achieving net zero, while supporting jobs and economic growth.

Castle Cement has been awarded £5.5 million to advance its carbon capture and storage (CCS) project at its Padeswood plant.

This initiative is expected to capture 800,000 tonnes of CO2 annually – the equivalent of removing 320,000 cars from UK roads – and create hundreds of jobs during construction.

Simon Willis, CEO of Hanson UK, which owns Castle Cement, described the Padeswood project as a “global exemplar” in decarbonising construction materials.

“This will provide net zero construction materials for major projects across the country, from offshore wind farms to clean transport infrastructure, as early as 2028,” he said.

In Ellesmere Port, Essar Oil UK received over £2.2 million for two projects at the Stanlow refinery.

The funding will support a carbon capture study and the transition to low-carbon hydrogen, a move expected to play a key role in decarbonising fuel production.

Essar’s initiative aligns with wider efforts to make Stanlow one of Europe’s leading low-carbon refineries.

The grants, which cover up to 40% of project costs, are part of a broader £154 million investment into clean technologies by the recipient companies.

This private-sector contribution reflects the growing interest in sustainable innovation.

Other recipients include Heinz in Wigan, which is using its £2.5 million grant to install heat pumps that recycle waste heat to power food production, and Novelis in Warrington, which secured £14 million to expand its recycling capacity, reducing carbon emissions by over 350,000 tonnes annually.

Industry Minister Sarah Jones said, “Helping businesses of all sizes to reduce their emissions is core to our Plan for Change. These companies represent the best of British innovation, using new technologies to become more sustainable while supporting economic growth.”

The IETF is part of a larger effort to decarbonise high-energy industries in the UK, with other projects including Teesside’s first carbon capture facility and expanded renewable energy initiatives.