Welcome to this week's edition of the Carbon Corner, where we explore pivotal advancements and strategic initiatives shaping the future of clean energy. In this issue, we delve into the EU's adoption of the groundbreaking Net Zero Industry Act, a bold move to accelerate carbon capture and storage (CCS) deployment and strengthen Europe's clean energy leadership. We also highlight Synergia Energy's farm-out process for the Medway Hub Camelot CCS project and Guidehouse Insights' latest report on leading carbon capture solution providers.
These stories underscore the dynamic efforts and innovative technologies propelling the global transition towards net-zero emissions.
Perenco UK and Carbon Catalyst Propel Forward with Poseidon CCS Project in the North Sea
Perenco UK and Carbon Catalyst Limited are making significant strides in carbon capture and sequestration with their Poseidon CCS project at the Leman gas fields in the UK southern North Sea. This ambitious initiative has gained further momentum with Wintershall Dea acquiring a 10% stake in November 2023, marking their second CCS venture in the UK. Petrodec, a member of the Dixstone group, is providing extensive support for the CO2 injection test, including a 1,000 m² deck space rig and comprehensive operational logistics.
The Leman field, the largest reservoir complex in the UK Continental Shelf, offers a blend of depleted gas reservoirs and saline aquifers, boasting an ultimate storage capacity of around 1,000 million tonnes of CO2. With the Perenco CCS team actively preparing for the CO2 injection test, they recently reviewed equipment arrangements on the ERDA jackup rig, signaling a hands-on approach to the project's advancement. The field is strategically connected to the PUK Bacton Terminal for offshore CO2 processing, positioning it as a key player in the UK's carbon storage efforts.
Set to commence operations by 2029, the project aims to initially inject 1.5 million tonnes of CO2 annually, ramping up to approximately 10 million tonnes per annum by 2034, with the potential to peak at around 40 million tonnes per annum over a 40-year period.
Synergia Energy Advances Medway Hub Camelot CCS Project with Farm-Out Initiative
Synergia Energy has embarked on an exciting new phase for its Medway Hub Camelot CCS project in the UK waters, following a pre-FEED study by Axis Well Technology and the award of a carbon storage license. The project, estimated to have a storage capacity of 70 to 100 million tonnes of CO2, has garnered significant interest from multiple parties. The first CO2 injection is slated for 2032, and Synergia Energy is offering up to half of its 50% interest in the CS019 license under a farm-out arrangement, pending regulatory approvals. Synergia, along with its partner Wintershall Dea, each hold a 50% interest in the project, situated in the UK Southern North Sea.
The Medway Hub CCS project aims to capture and transport CO2 emissions from coastal combined-cycle gas turbine (CCGT) power stations. CO2 will be transported in liquid form by marine tankers to a floating injection, storage, and offloading (FISO) vessel, which will inject it into depleted gas fields and saline aquifers for permanent sequestration on the UK Continental Shelf (UKCS). This innovative project will handle CO2 from three major CCGT power stations on the Isle of Grain near Rochester, Kent, ensuring effective capture and storage of emissions from the Medway, Damhead, and Grain power stations.
Britain's commitment to decarbonization is evident with a £20 billion funding boost for CCS announced in 2023. The country's first-ever CO2 storage licensing round offered 20 licenses, with 13 areas off the UK coast designated for permanent CO2 storage. This strategic move aims to enable the UK to store 30 million tonnes of CO2 annually by 2030, significantly contributing to the nation's carbon reduction goals.
Guidehouse Insights Reveals Top Advanced Carbon Capture Solution Providers
A new report from Guidehouse Insights has spotlighted the frontrunners in advanced carbon capture solutions for commercial-scale point-source applications. As global decarbonization efforts intensify, the demand for point-source carbon dioxide (CO2) capture technology is surging, particularly in hard-to-decarbonize sectors like industry and power generation. The report identifies Shell Catalysts & Technologies/Technip Energies, Mitsubishi Heavy Industries, and Honeywell Universal Oil Products as the leading providers in this rapidly growing field.
According to Serkan Birgel, a research analyst with Guidehouse Insights, the current CCUS industry is more globally integrated and features numerous projects aimed at storing CO2 rather than utilizing it. Despite the slow market deployment and the challenges in achieving net-zero CO2 emissions by 2050, the industry is witnessing accelerated growth. This dynamic landscape is expected to evolve further with technological advancements, mergers and acquisitions, and changes in policies and legislation.
EU Adopts Net Zero Industry Act to Lead Global Clean Energy Race
The EU has made a decisive leap in clean energy technology with the adoption of the Net Zero Industry Act (NZIA) on May 27. Aimed at preventing the EU from lagging behind the US and China, this legislation seeks to scale up carbon capture and storage deployment, a critical technology that has faced numerous setbacks over the years. The NZIA will redirect EU funding, streamline permitting processes, and align with the Critical Raw Materials Act to ensure access to vital elements like lithium and rare earths.
Key targets under the NZIA include achieving a manufacturing capacity of net-zero technologies to meet 40% of domestic demand by 2030 and securing a global market share of at least 15% in all key low-carbon technologies by 2040. The law also mandates EU petroleum producers to develop facilities for storing 50 million tonnes of CO2 annually, pushing the industry to take responsibility for climate action and easing the financial burden on taxpayers. This move is expected to accelerate the decarbonization of hard-to-abate industries.
European Commission President Ursula von der Leyen hailed the legislation as creating optimal conditions for scaling up domestic production, crucial for achieving net-zero by 2050. The Act is designed to foster a stable and competitive environment for investors, enhancing Europe's industrial resilience, creating quality jobs, and increasing energy security.
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We hope you enjoyed reading this week and hope to see you back next week for more!