Offshore report: CO2 capture pipeline at risk in UK; Saipem lands US$1.9Bn in contracts

A new report from Westwood Global Energy Group reveals that while the UK has potential to far exceed its carbon capture and storage (CCS) targets, delays, cancellations and under-delivery still pose a significant risk.

"Following the UK’s first Carbon Storage Licensing Round, the findings underscore the critical nature of setbacks in government funding, congested licence work programmes, and challenges in securing access to CO2," the company said.

According to Westwood’s analysis of current project schedule reports, the UK is on track to exceed its upcoming carbon storage targets.

"By 2030, there is potential for up to seven carbon storage sites with capacity for over 45M tonnes per annum (mta), double the lower end of [the UK’s] target. Encouragingly, the research uncovers that the UK is also well-placed against its 2035 ambitions and could look to reach over double its 50 mta target," Westwood said.

However, even minor delays to these carbon storage project pipelines could derail the UK’s ability to hit its targets. 

Westwood senior analyst for northwest Europe Catherine Horseman-Wilson said, “The industry is grappling with a series of challenges, from funding delays and congested work programmes, to access to CO2 and co-location and infrastructure re-use difficulties, so the likelihood of delays can’t be ignored. The UK has a significant opportunity, with a strong capability to surpass its targets, but contingency planning will be a crucial element in securing its full potential, particularly in ensuring the strict adherence to schedules and maintaining a reliable CO2 supply.”

In recent weeks, UK-based carbon capture and storage investor and consultancy Carbon Catalyst Ltd (CCL) has announced the backing of two international partners for CCS projects in UK waters. Sumitomo subsidiary Summit Energy Evolution Ltd (SEEL) has taken a 10% working interest farmout on the Orion carbon storage licence located in the Southern North Sea sector of the UK Continental Shelf. SEEL joins CCL and licence operator Perenco on two carbon storage licences CS017 and CS018, which cover the Perenco UK-operated and decommissioned Amethyst and depleted West Sole gas fields. 

"These fields are the most geographically proximal offshore storage sites to Humberside, the UK’s largest industrial cluster, and are directly connected by pipeline to the PUK-operated onshore Dimlington Gas Terminal," according to CCL.

And German energy company Wintershall Dea has taken a 10% working interest farmout in the Poseidon carbon storage licence located in the Southern North Sea sector of the UK Continental Shelf. Wintershall Dea joins CCL and licence operator Perenco on the project. 

Poseidon marks Wintershall Dea’s entry into a second UK CCS project and fifth in the wider North Sea, including the Greensand CCS project in the Danish North Sea. In March 2023, together with INEOS, Wintershall Dea successfully demonstrated the first full cross-border CCS value chain in Europe with the pilot injection of CO2 from a Belgian emitter which was safely stored in the depleted Nini West oil field.

And this week in the UK, Aquaterra Energy secured a contract with INEOS to undertake life extension work for the Nini platform to enable its use for CO2 injection through 2045. 

"Greensand is the most mature CO2 storage project in Demark. It aims to store up to 1.5M tonnes of CO2 per year by 2025, making it a key project in meeting the International Energy Agency’s sustainable development scenario goal of 5,635 megatonnes of CO2 stored globally per year by 2050. The CO2 will be captured from European emitters and transported to the platform located in the North Sea. It will then be sent underground via the existing offshore platform to be stored permanently in a sandstone reservoir 1,800 m below the seabed," Aquaterra said.