Energy company, Eni, has submitted all of the necessary documentation required to partake in the “Cluster Sequencing for Carbon Capture Usage and Storage Deployment: Phase 1” tender process held by the UK Government.
A successful bid will see the Carbon Capture Storage Infrastructure Fund (CCFI) granting access to Eni UK and its partners. This will allow financial support in the form of a non-repayable grant of £1bn providing four projects for the capture and storage of around 10 million tons of carbon dioxide (CO2) are realised by 2030.
One project stream is due to begin by 2025 (Track 1 projects) and the other will start by 2027 (Track 2 projects).
With the British Government promoting the idea of a ‘Green Industrial Revolution’, the fund is part of its ‘Ten Point Plan’ presented in November 2020. The plan involves an investment strategy consisting of £12bn in order to push forward the United Kingdom’s energy transition plan.
It also aims to promote technologies other than CCS, such as offshore wind, blue and green hydrogen, nuclear power, electric mobility and energy efficiency of private homes.
As the group lead for the consortium that will develop the HyNet project, which is aimed at decarbonising the industrial district in the North-West of England, Eni, along with other local companies, aims to capture, transport and store the CO2 emitted by pre-existing local industries and future production sites for blue hydrogen. This will be used as an alternative fuel for heating, electricity generation and transport.
By being the group lead in one of the first CCS infrastructures in the UK, Eni UK will play an important part in the project by transporting and storing the CO2 in its depleted hydrocarbon reservoirs. The reservoirs are located at around 18 miles offshore in Liverpool Bay, for which Eni UK was the recipient of a carbon storage license awarded by the UK Oil & Gas Authority (OGA) in October 2020.
By 2030 the project is anticipated to help reduce CO2 emissions by up to 10 million tonnes every year, contributing by 80% to the Government’s new UK-wide target of 5GW of low carbon hydrogen, as well as helping the UK meet its Net Zero emissions target by 2050.