MEMBER NEWS: MNZ Cluster signs Memorandum of Understanding with Peak Cluster to explore carbon storage solution for major cement and lime plants

September 28, 2023
MEMBER NEWS: MNZ Cluster signs Memorandum of Understanding with Peak Cluster to explore carbon storage solution for major cement and lime plants

The Morecambe Net Zero (MNZ) Cluster, a planned carbon dioxide storage facility off the coast of Barrow-in-Furness, has today entered into a Memorandum of Understanding (MoU) to explore storage opportunities for carbon dioxide (CO2) captured by the Peak Cluster. Together, MNZ and Peak Cluster will accelerate the UK’s journey to net zero.

Peak Cluster is a collaboration, decarbonising the heart of the UK’s cement and lime industry. Located in Derbyshire and Staffordshire along with neighbouring industries in Cheshire, Peak Cluster is made up of four of the UK’s leading cement and lime producers – Tarmac, Breedon, Lhoist and Aggregate Industries, alongside the Lostock Sustainable Energy Plant in Cheshire, working together with Progressive Energy, a low carbon energy project developer.

Spirit Energy, the company leading a consortium to deliver the MNZ Cluster, will transform the depleted North and South Morecambe gas fields into a world-leading carbon storage facility. This facility has the potential to be one of the biggest in Europe, and thanks to its natural geological capacity, the fields have the potential to store up to one gigatonne (one billion tonnes) of CO₂ in its lifetime.

The UK’s cement production industry is essential for Britain’s construction industry, contributing around £18 billion to the UK’s GDP, directly employing 81,000 people and supporting 3.5 million jobs. However, it is impossible to make cement and lime without generating CO2. The plants within Peak Cluster are responsible for 40% of cement and lime production in the UK, employing well over 1000 people but emit more than 3 million tonnes of CO2 per year. Through the MoU, MNZ and Peak Cluster will explore together how these organisations could access the MNZ Cluster’s permanent and safe storage solution.

Connecting Peak Cluster to the MNZ Cluster via pipeline will help vital industries continue operating within the UK, retaining jobs in their local communities, and supporting them on the pathway to net zero. The MNZ Cluster also has the potential to create thousands of new and innovative green jobs in the North West, in addition to supporting existing jobs in carbon-intensive industries as they decarbonise.

Neil McCulloch, CEO of Spirit Energy, said: “We are proud to sign this Memorandum of Understanding today, so that the MNZ Cluster can provide one of the UK’s most vital industries, the construction sector, with access to cost-effective decarbonisation. Capturing and storing carbon is essential to helping these industries on the path to net zero, enabling them to remain productive and supporting the thousands of jobs reliant on these sectors.”

John Egan, Project Director for Peak Cluster at Progressive Energy, said: “Peak Cluster will dramatically reduce carbon dioxide emissions from industry located across Derbyshire, Staffordshire and Cheshire, starting from 2030. Not only will this safeguard British jobs and maintain a booming supply chain, it will also enable the production of low carbon cement – essential for the UK economy and the construction of vital infrastructure such as homes, hospitals and clean energy production. We are delighted to see our collaboration extend to this agreement with MNZ.”

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AREG has played an important role in the growth of Scotland’s renewable energy sector, engaging the supply chain and developing the European Offshore Wind Deployment Centre. However, we are only at the very beginning of the transition that AREG was established to both lead and support so there are still opportunities for companies to get into the constantly evolving renewables supply chain. We look forward to continuing our work together as renewables builds on its place as Scotland’s main source of power, and as we seek to deliver real change in the crucial areas of heat and transport.

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The enthusiasm and dedication of the early group that would become AREG was fundamental in us choosing to launch All-Energy in Aberdeen. The first tiny show was held in 2001, and AREG’s Chairman at the time, Jeremy Cresswell, played such an active role that I often describe him in terms such as All-Energy’s ‘midwife’. All-Energy is now the UK’s largest renewable and low carbon energy exhibition and conference in terms of number of attendees, space booked, and number of exhibiting companies. As AREG became firmly established, their presence and support for the event grew spectacularly over the years. We thank them most sincerely for their invaluable input.


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Aberdeen City and Shire is emerging as a key location for renewables by successfully transferring its world-class oil and gas expertise into the sector and AREG has done much to advance this through a broad range of initiatives. It has acted as a catalyst in driving further investment in the local economy by engaging with companies, Government, public bodies and existing projects and we have been pleased to support their efforts. Scottish Enterprise will continue to engage with AREG as we increase Scotland’s use of renewable energy.

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