UK and Eni to Launch Liverpool Bay Carbon Capture Project
MILAN/LONDON (Reuters) - The British government and Italian energy group Eni have reached an agreement for the launch of the Liverpool Bay carbon capture (CCS) project, they said on Thursday, opening the way to the construction phase for the initiative.
The government said last year it would provide funding of up to 21.7 billion pounds ($28.76 billion) over 25 years to develop CCS projects to curb emissions from industry and create new jobs in northern England.
The Liverpool Bay project is included in this initiative and is expected to help cut emissions in a major industrial area of the UK.
The project will allow the transport of carbon dioxide (CO2) from industrial plants across the northwest of England and north Wales through new and re-purposed infrastructure to Eni's depleted gas fields in Liverpool Bay.
It also involves the construction of 35 km (22 miles) of new pipelines to connect industrial plants to the Liverpool Bay CCS network, Eni said in a statement.
Eni did not give financial details of the agreement.
The Liverpool Bay project will be the backbone for the so-called HyNet CCS Cluster, Eni said, adding the Italian group would act as the CO2 transport and storage system operator.
The initiative is part of Britain's efforts to curb emissions from energy-intensive industries and reach net zero emissions by 2050.
The International Energy Agency says CCS can play a vital role in achieving global climate goals while critics say it risks prolonging the use of fossil fuels and question its commercial viability.
Eni plans to create a separate division dedicated to CCS and is currently in talks with a handful of suitors interested in taking a minority stake in this business, sources told Reuters.
It is developing several CCS projects including one in Italy where it is working with gas grid operator Snam.
The news of the UK agreement was first reported by the Financial Times newspaper late on Wednesday.
(Reporting by Francesca Landini in Milan; additional reporting by Susanna Twidale in London; Editing by Susan Fenton)
