Billionaire rethinks new UK green investment after Sunak backs carbon capture from ‘failed technology’

LONDON – An Australian billionaire says he may stop investing in UK green technologies after the government announced new backing for carbon capture and storage (CCS) technology.

Andrew Forrest, an international investor and climate philanthropist, said the UK government’s plans to invest billions of pounds in CCS meant “pinning Britain’s hopes (on) a failed technology”.

First Minister Rishi Sunak confirmed on Monday that the government would invest in CCS projects in north-east Scotland and the Humber.

The government has pledged to provide up to £20bn for the “early deployment” of carbon capture technology over the next two decades.

Forrest, one of Australia’s wealthiest businessmen, told POLITICO he had “deep respect” for Sunak, but described CCS as a climate strategy promoted by the oil and gas industry.

It was an industry “waiting for the next idiot to show up,” Forrest said.

Forrest, founder of Australian iron ore mining giant Fortescue and chairman of its subsidiary Fortescue Future Industries, is already investing in battery production in the UK. Forrest recently announced an expansion of operations at a facility in Oxfordshire run by WAE Technologies, which the Australian firm bought. last year.

“I am investing hundreds of millions of pounds in Britain to develop their technology and their expertise,” he said. “That’s the latest in battery technology, battery intelligence, everything the world needs that will make Britain relevant.”

But it cast doubt on the UK as an option for “really big investments, where I’m going to mass-produce these world-leading technologies.”

Forrest said: “Will I do them in Britain? No. I cannot invest in a country that basically denies global warming and puts its faith in a failed ‘wait for the next idiot’ solution called CCS.”

CCS technology involves capturing carbon emissions from fossil fuel production or industry, transporting and storing them underground or under the seabed.

While some scientists believe it will play a role in counterbalancing emissions from industries that are hard to decarbonise, many climate activists are skeptical about the technology’s viability in the short term. Friends of the Earth on Monday called the government’s carbon sequestration announcement a “green shine” on its oil and gas plans.