LONDON — An Australian billionaire says he may step back from investing in U.K. green technologies after the government announced new backing for carbon capture and storage (CCS) technology.
Andrew Forrest, an international investor and climate philanthropist, said U.K. government plans to put billions of pounds into CCS meant “putting Britain’s hopes [on] failed technology.”
Prime Minister Rishi Sunak confirmed on Monday that the government would be investing in CCS projects in Northeast Scotland and the Humber.
The government has committed to providing up to £20 billion for the “early deployment” of carbon capture technology over the next two decades.
Forrest, one of Australia’s wealthiest business people, told POLITICO that he had “deep respect” for Sunak, but described CCS as a climate strategy promoted by the oil and gas industry.
It was an industry “just waiting for the next idiot to come along,” Forrest said.
Forrest, founder of Australian iron ore mining giant Fortescue and chair of its subsidiary Fortescue Future Industries, is already investing in battery production in the U.K. Fortescue recently announced an expansion of operations at a facility in Oxfordshire run by WAE Technologies, which the Australian firm bought last year.
“I’m investing hundreds of millions of pounds in Britain to build up your technology and to build up your expertise,” he said. “That’s at the cutting edge of battery technology, battery intelligence, everything the world needs which will make Britain relevant.”
But he cast doubt on the U.K. as an option for “really big investments, where I go to mass produce these globally-leading technologies.”
Forrest said: “Will I make them in Britain? No. I cannot invest in a country which is basically denying global warming and putting its faith in a failed ‘wait for the next idiot to come along’ solution called CCS.”
CCS technology involves capturing carbon emissions from fossil fuel production or industry, transporting them, 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 decarbonize, many climate campaigners are skeptical about the technology’s viability in the near-term. Friends of the Earth on Monday called the government’s carbon capture announcement a “green gloss” on their oil and gas plans.