The plans are designed to generate private investment and jobs in Merseyside and Teesside, two industry-heavy areas that will be home to the new "carbon capture clusters".
The government has committed up to £21.7bn over 25 years, to be given in subsidies to sites in the Teesside and Merseyside "clusters" - from 2028.
It will be split between three projects, which are capturing carbon dioxide released either from making hydrogen, generating gas power or burning waste to create energy from 2028.
The gas - up to 8.5 million tonnes of carbon emissions - will be locked away in empty gas fields in the Liverpool Bay and the North Sea.
The government hopes it will attract £8bn in private investment, create 4,000 direct jobs and support a further 50,000.
The funding is to come from a mixture of Treasury money and energy bills, but the government has been coy about the split so far.
Sir Keir said the announcement will "give industry the certainty it needs" and "help deliver jobs, kickstart growth, and repair this country once and for all".
