Eni has announced the achievement of a major milestone, positioning itself in the UK as a major player in projects using Carbon Capture and Storage (CCS) technology, a key lever for achieving targets in the fight against climate change. The UK's Department for Energy Security and Net Zero (DESNZ) has announced the list of CO2 capture projects that will access the £20bn of funds allocated to Track 1 initiatives, planned by the Government to accelerate the country's decarbonisation. Of the 8 projects selected, 5 belong to theHyNet North WestConsortium, in which Eni is the operator for CO2 transport and storage activities. The other 3 selected projects belong to the East Coast Cluster on the East Coast of the UK.
With these 5 projects, Eni will contribute to the decarbonisationof large companies with the highest CO2 emissions in the North West Region of England, such as those in the 'hard to abate' sector. The volume of CO2 captured within the framework of the first 5 projects will be collected, transported and permanently stored by Eni in its depleted gas fields off the Liverpool Bay coast.
Through the development of the HyNet CCS project, Eni will play a leading role in the decarbonisation journey of the UK. HyNet is scheduled to start in the middle of this decade with an injection rate of around 4.5 million tonnes per year of CO2 in the first phase, rising to around 10 million tonnes per year as of 2030.
The launch of the HyNet North West project involved the transformation of one of the UK's most energy-intensive industrial areas, in the Liverpool Bay area on the North West coast, into the first low-carbon industrial cluster in the world. The key element is Carbon Capture and Storage (CCS), i.e. the geological storage ofCO₂: thanks to the transformation of existing infrastructure, the carbon dioxide emitted by industries in North West England and North Wales will be captured and permanently stored in depleted hydrocarbon fields, specifically in Eni UK's Hamilton, North Hamilton and Lennox offshore fields.
In October 2020 the Oil and Gas Authority (OGA) awarded us a six-year licence to use our offshore fields in the Liverpool Bay as permanent storage for CO₂. 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 required to complete the ongoing engineering studies.
In July 2021 Eni UK, in its role as the leader of the consortium that will develop the integrated HyNet North West project, submitted documentation to participate in the first tenderheld by the UK Government for Cluster Sequencing for Carbon Capture Usage and Storage Deployment: Phase 1. The tender was successful and in October 2021 HyNet was listed as a CCUS project in Track 1. This success is particularly important for two reasons: because it allows activities to start up in the mid-2020sand because it enables Eni UK and the consortium partners to access the Carbon Capture Storage Infrastructure Fund (CCFI), a public fund that provides £1 billion in grants for the implementation of four CO₂ capture and storage projects, totalling around 10 million tonnes per year by 2030. This fund is part of the broader £12 billion investment plan envisaged in the Ten Point Plan presented in November 2020 by the UK Government with the aim of leading the UK towards energy transition and promoting the Green Industrial Revolution.
In February 2022, Eni UK announced that it had signed a total of 19 Memoranda of Understanding with companies interested in capturing, transporting and storing their emissions through HyNet North West, confirming UK industry’s considerable interest in the decarbonisation potential offered by the initiative.
HyNet North West is promoted and developed by a multi-partner consortium which Eni leads through Eni UK, together with Progressive Energy, Cadent, CF Fertilisers, Essar, Hanson, INOVYN (part of INEOS Group) and the University of Chester. As regards Eni, we are the operator of CO2 transport and storage activities, both onshore and offshore. The project is actively supported by the UK Government, as achieving the country's 2050 net zero emissions target is considered essential. In addition to its importance for the path towards decarbonisation, the initiative will actively contribute to the region’s economic well-being both through the activation of new job opportunities linked to the new facilities, and through the area’s increased competitiveness linked to the possibility for companies to reduce their emissions through CCS.
The UK Government has recognised the importance of the contribution that the HyNet project can make to the decarbonisation of pivotal activities in the country. This decision demonstrates once again that carbon capture, use and storage technology is an important solution that is safe, effective and immediately available.
The HyNet North West project will significantly reduce CO₂ emissions from the Liverpool Bay industrial area and develop a low-carbon hydrogen supply chain.
In a second phase, HyNet North West is also developing a low emission hydrogen supply chain, through the integration of existing natural gas plants with CCS activities. In this way, emissions from hydrogen production cycles will also be captured and stored in exhausted hydrocarbon offshore fields. The resulting hydrogen will be low carbon and will be distributedas a transitional fuel to supply industries, heat homes, produce electricity and power transport. In total, the project aims to reach about 40% of the UK's 10GW * target of low-emission hydrogen.
*In April 2022, the UK government doubled its hydrogen production target, raising it to 10 GW from 5 GW.
Growth and development in the area
HyNet North West will encourage the creation of new jobs and help support the competitiveness of the industrial area, enabling companies to reduce their emissions.
The 2030 Agenda for Sustainable Development is a blueprint signed by the 193 member countries of the UN in September 2015 which covers 17 goals aimed at the socio-economic development of communities and territories. The carbon dioxide storage project gives us the opportunity to contribute to the promotion of actions to combat climate change (Goal 13).
Safety in the workplace is an imperative value we want to share with our employees, contractors and local stakeholders. We are committed to eliminate accidents and protect the integrity of our assets. We consolidate a culture of safety through management and organization models, digital tools and communication initiatives. Our goal is strengthening the awareness of our people and their sense of responsibility toward themselves and others, by expanding HSE tools and digitalization to make corporate processes safer, more efficient and faster.
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