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The Bacton Thames Net Zero initiative for the development of a CCS project

In September 2022 Eni UK announced that it submitted through the North Sea Transition Authority (NSTA) system a Carbon Storage License Application for the Hewett depleted gas field on the Southern North Sea for the development of a CCS project aimed at decarbonising the Bacton and Thames Estuary area, for a permanent and safe CO₂ storage with a total capacity of about 330 million tonnes. The CCS project will allow to avoid a significant volume of CO₂ to the atmosphere, equivalent to the carbon dioxide emissions of over 3 million homes or over 6 million cars per year. In addition, Eni UK announced the set up of the Bacton Thames Net Zero initiative with the aim to decarbonise and to unlock new greener growth opportunities for the automotive, ceramics, food, materials, energy and waste disposal sectors in the UK South East, supporting materially the UK’s decarbonisation strategy. Eni UK will play a pivotal role in this industry-led initiative by transporting and storing CO₂ in its Hewett depleted gas field, that could be operational as early as 2027. Eni UK will provide further added value to this initiative by leveraging on the ongoing technical and commercial experience gained from Liverpool Bay CCS and the wider HyNet North West, as an existing CO₂ appraisal and storage license holder.

£33 million

funding received (£21 million net to Eni)

4.5 million tonnes

a target of storage per year of CO₂

10 million tonnes

potential annual reduction carbon dioxide (CO₂)

2025 Start-up

activity

Eni Liverpool Bay Project: a carbon dioxide appraisal and storage licence

In February 2022, Eni UK announced that it had signed a total of 19 MoUs with companies interested in capturing, transporting and storing their emissions in Eni UK's depleted fields. These agreements show that there is considerable interest among British industry in the decarbonization potential offered by the initiative. Production will start in different stages in the 2023-2025 period. In October 2021 Eni UK, on behalf of the HyNet Consortium Cluster, is delighted to announce that its submission to the Cluster Sequencing process has been accepted as a Track 1 project. This acceptance will allow Eni UK and the supporting entities of Hynet to proceed as one of the first UK industrial clusters to apply carbon capture and storage (CCS), to materially reduce carbon emissions in the UK. In July 2021 Eni UK, as the group lead for the consortium that will develop the HyNet North West integrated project, has submitted the documentation necessary to participate in the Cluster Sequencing for Carbon Capture Usage and Storage Deployment: Phase 1 tender process held by the UK Government. In the event of its successful bid, Eni UK and its partners will gain access to the Carbon Capture Storage Infrastructure Fund (CCFI), with non-repayable financial support of £1bn for the realisation of four projects for the capture and storage of around 10 million tons of CO2 by 2030. The process involves two project streams with different starting time, one by 2025 (Track 1 projects), and one by 2027 (Track 2 projects). The fund is part of a broader investment plan of £12 billion for the Ten Point Plan presented in November 2020 by the British Government to drive the United Kingdom’s energy transition plan and promote the Green Industrial Revolution. In addition to CCS, the plan aims to promote other technologies such as offshore wind, blue and green hydrogen, nuclear power, electric mobility and energy efficiency of private homes.

Moreover, in June 2021 Eni UK and Uniper signed a Memorandum of Understanding (MOU) to jointly evaluate decarbonisation initiatives in North Wales. The collaboration, in line with the UK government's ten point plan for green industrial revolution, will investigate the technical and commercial feasibility to work together on future low carbon project initiatives in the region. In May 2021 Eni and Progressive Energy Limited have announced the signing of a framework agreement to further accelerate carbon capture and storage (CCS) within the HyNet North West low carbon cluster project. Under the agreement, Eni will develop and operate both the onshore and offshore transportation and storage of CO₂ in their Liverpool Bay assets, whilst Progressive Energy will lead and coordinate the capture and hydrogen aspects of the project on behalf of Hynet North West, thereby linking together the sources of CO₂ emissions to Eni’s transportation and storage infrastructure. In March 2021 the project received £33 million in funding from UK Research and Innovation (UKRI), through its Industrial Decarbonisation Challenge (IDC) fund. The funding covers around 50% of the investment necessary to finalise ongoing planning studies with the aim of the site becoming operational by 2025.

In October 2020, the Oil and Gas Authority (OGA) announced it had awarded a carbon dioxide (CO₂) appraisal and storage licence (CS licence) to Eni UK Limited (Eni). The CS licence will cover an area located within the Liverpool Bay area of the East Irish Sea. Under the CS licence, we plan to reuse and repurpose depleted hydrocarbon reservoirs (the Hamilton, Hamilton North and Lennox fields) and associated infrastructure, to permanently store CO₂ captured in North West England and North Wales. The application for a CS licence was made by Eni in order to help address the decarbonisation needs of the region. It forms part of a collaborative effort with industrial companies to capture and transport CO₂ from existing industries, along with future hydrogen production sites for fuel switching, heating, power and transportation. HyNet North West will place the region at the forefront of the UK’s journey to net zero emissions by 2050. We expect the project to benefit local communities by creating new job opportunities and assist to develop the economy of the area whilst providing a tangible pathway to energy transition and decarbonisation.

£ 6 billion

expected total cost

2,4 GW

total capacity

3,6 GW

full capacity

190 turbine

state-of-the-art turbines (each turbine 13 MW)

We entered the UK offshore wind market for electricity production

In November 2021 we strengthened our presence in the UK offshore wind market by entering into an agreement with Equinor and SSE Renewables to acquire a 20% stake of the 1.2GW Dogger Bank C project. Dogger Bank C is the third phase of the world largest offshore wind farm currently under construction. Once completed, Dogger Bank will generate around 18 TWh. Financial close of project financing for the site is expected before the end of 2021. The closing of the transaction is expected in 1Q 2022, subject to customary closing conditions. In July 2021 Scottish offshore wind developer, Red Rock Power Limited and Eni, the Italian energy company, have formed a new 50/50 partnership as they prepare to make a joint bid with the support of transmission company, Transmission Investment in the forthcoming ScotWind offshore leasing round. The companies will also consider future renewable opportunities in Scotland and combine their wind farm development and offshore expertise, harnessing a common desire to support the net zero transition. The partnership’s future offshore wind projects in particular would prioritise maximising opportunities for local supply chain growth, the development and deployment of new technologies, and contributing to the decarbonisation of the North Sea and the transfer of skills this will generate. In December 2020 we entered the UK offshore wind market for electricity production through the acquisition of a 20% stake from Equinor and SSE Renewables of the Dogger Bank (A and B) project. The plan involves the installation of 190 state-of-the-art turbines situated approximately 80 miles from the north east coast of England. Each turbine has a capacity of 13 MW for a total capacity of 2.4 GW. At full capacity, Dogger Bank will be the world’s largest project of its kind, generating around 5% of UK demand for renewable electricity and supplying energy to approximately 6 million British homes. The construction of the Dogger Bank (A and B) will take place in two stages, with the first to be completed by 2023 and the second by 2024. By entering the Dogger Bank (A and B) project, Eni adds 480 MW of renewable energy to its 2025 target of 5GW of installed capacity from renewable sources, while it will additionally be able to explore potential synergies with the retail business.

7 mm bbl

Annual oil and condensate production

43 bcf

Annual gas production

15 mm boe

Annual hydrocarbon production

Offshore drilling and work-over

In November 2021, Eni submitted to the UK authority of Oil & Gas (OGA) in the Country a request to award a new license for possible realization of a CO2 storage project in Eni’s exhausted offshore fields in the Hewett license, where production ended in 2020, to future develop the Bacton area as an hydrogen production hub. In 2021 Eni announced exiting the Net Zero Teesside (Eni’s interest 20%) and the North Endurance Partnership (Eni’s interest 16.7%) projects where development activities are ongoing with other oil and gas partners in the area, following Eni’s rationalization strategy of CCS projects in the United Kingdom based on focusing on its operated upstream assets.We work on concession contracts in the Irish Sea and the North Sea off England. We are an operator with shares in four production areas, among them Liverpool Bay (100%) and Hewett Area (89.3%). The other main fields are Elgin/Franklin (21.87%), Glenelg (8%), J-Block and Jasmine (33%) and Jade (7%). Development activities mainly concerned Elgin/ Franklin and Joanne and Jasmine fields with the drilling of four new wells in production. We hold interest in 15 exploration licenses, 12 of which are operated, with interest ranging from 9% to 100%. In July 2021, we finalized the acquisition of 100% interest in the Conwy production field located in the Liverpool Bay area, near existing production facilities. This acquisition currently increases the production in the Country by leveraging on the operational synergies while in the next years during the abandonment phase this asset could be included in possible transitions to CO2 storage projects. In January 2021 we announced the successful award of a new Production Licence, resulting from an application made in the 32nd UK Offshore Licensing Round. The Licence, named P2511, covers an area of approximately 340 square kilometres and is located approximately 250 km offshore UK in the Northern North Sea. It is situated near the UK/Norwegian border where several significant discoveries were recently made. The Licence has an Initial Exploration Term of six years. Eni UK will assume the role of operator with a 100% participating interest.

2.65 bcm

Our activities in the gas sector

In the United Kingdom, Eni, through its subsidiary Eni Trading & Shipping SpA (ETS), markets in the United Kingdom the equity gas produced at Eni’s fields in the North Sea and operates in the main continental natural gas hubs (NBP, Zeebrugge, TTF). In 2021, sales amounted to 2.65 bcm, up by 1.03 bcm or 63.6% compared to 2020 due to higher volumes sold to hub.

Eni Global Energy Markets (EGEM)

Starting from 1st January 2021 EGEM acts in the international trading of gas, power, CO₂ (as a single interface between Eni and the markets), LNG and Oil derivatives. It is a global, integrated approach designed to make the most of Eni’s network of contacts and wide asset portfolio.

Eni Trade & Biofuels

In keeping with Eni’s overall strategy in respect of the global energy transition, starting from January 1, 2021, Eni Trade & Biofuels SpA (ETB), fully owned by Eni SpA, is the sole entity responsible for the international trading of crude oil, petroleum products, bio-fuels and related financial derivatives for the Eni group.

HyNet North West: CO₂ storage

The first low GHG emissions industrial cluster in the world under development in the Liverpool Bay which we are involved in for CCS activities.

DISCOVERY MORE

4.5Mton/y

of annual storage potential of CO₂ as of 20

DISCOVERY MORE

Take urgent action to combat climate change and its impacts

Liverpool Bay: preserving biodiversity in the United Kingdom

Since 1995 we have been involved in many initiatives to protect the natural environment and biodiversity around our operations in North Wales.

DISCOVERY LIVERPOOL BAY

182 ha

of land managed by Eni

DISCOVERY LIVERPOOL BAY

Make cities and human settlements inclusive, safe, resilient and sustainable

Protect, restore and promote sustainable use of ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

UK Fact Sheet 2021

PDF 440.26 KB

Contacts

Exploration & Production uk

Eni (UK) Ltd

Eni House

10 Ebury Bridge Road - Londra SW1W 8PZ

Tel: (0044) 020 73446000

EGEM.London.Reception@eni.com PEC: eniglobalenergymarkets@pec.eni.com

Eni Trade & Biofuels S.p.A. UK Establishment

123 Buckingham Palace Road – SW1W 9SL - LONDON - UK

Tel: +4420 7863 7205

Fax: +442078637201

Fax: +442078637202

ETB.London.Reception@eni.com

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Our work in United Kingdom

The Bacton Thames Net Zero initiative for the development of a CCS project

Carbon dioxide storage

Eni Liverpool Bay Project: a carbon dioxide appraisal and storage licence

Renewable energy in the UK