The government has announced funding for two north of England carbon capture sites, a day after ExxonMobil shelved its Solent CO2 Pipeline proposal.

Prime Minister Keir Starmer, Chancellor Rachel Reeves and Energy Secretary Ed Miliband have confirmed funding for two sites in Teesside and Merseyside.

It follows the American multinational oil and gas corporation's decision not to proceed with its pipeline plans.

ExxonMobil cited a "continued lack" of "government policy certainty" and "timelines" as a key factor in its decisions not to go ahead with the project which would involve transporting CO2 from the firm's Fawley Manufacturing Complex, and potentially the wider Solent area, to a deep rock formation in the English Channel.

Two of the corporation's proposed routes passed beneath the west of the Isle of Wight.

A spokesperson said yesterday: "Our major investment decisions are informed by several factors, including the policy, fiscal and market environment.

"Over the past three years, we have made sustained efforts with UK government to secure this certainty and enable the large-scale investment required and will maintain collaboration to address the necessary factors."

ExxonMobil also faced widespread resistance to its plans across the Isle of Wight, including the formation of a cross-party campaign group, a petition gathering over 30,000 signatures and an Isle of Wight Council vote to "strongly" object to the project.

The government has said funding for the Teesside and Merseyside sites will "directly" create "4,000 jobs" and support "50,000 jobs" in the long-term.

Prime Minister Keir Starmer said: "Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology – to help deliver jobs, kickstart growth, and repair this country once and for all."

Carbon capture and storage (CCS) technology is a method for reducing CO2 emissions and could be crucial for combatting climate change, according to the National Grid.

However, some environmentalists including Greenpeace UK have strongly criticised CCS.

Greenpeace UK has said CCS is currently "unproven" in reducing fossil fuel use and industry emissions at an "affordable cost".