Carbon capture and storage on the Humber has moved a major step forward with the award of Track Two status for the Viking project.
Harbour Energy’s proposal has the potential to clean up one of the most emission-intensive industrial clusters in Europe, tackling pollution from Immingham’s refining and power giants, while providing a shipping import location for others.
It is aiming to handle 10 million tonnes of carbon dioxide by 2030, adding a further 50 per cent by 2035, transporting it via a new pipeline to Theddlethorpe then out to the existing depleted gas fields it takes the name of. Viking, as well as the company’s sister Acorn project in North East Scotland, was described as “best placed to deliver government objectives” due to their maturity, in the latest sequencing announcement.
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Prime Minister, Rishi Sunak, said: “It’s vital that we decarbonise Britain in a way that protects jobs in the º£½ÇÊÓÆµ’s energy industry and supply chain, while strengthening our energy security.
“We’re powering towards net zero, and the new Viking CCS project will dramatically reduce emissions in our most industrialised region. As well as contributing to our ambition of storing 20 to 30 million tonnes of captured CO2 per year by 2030, it will drive investment and play a part in supporting 50,000 º£½ÇÊÓÆµ jobs.
“I’m delighted this Government is investing in this exciting new technology, and by supporting the Viking cluster we will deliver on our ambitious net zero ambitions and grow the economy.”
Single biggest regional emitter, Drax, has also now publicly stated it is looking at the project as a potential route for its captured CO2, while the wider pan-Humber hydrogen and carbon capture use and storage dual pipeline scheme is progressed. It remains a potential Track One expansion following the Teesside element of the East Coast Cluster being granted forerunner status in March.
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Linda Cook, Harbour Energy chief executive, said: “Today’s announcement is an important step forward for Harbour’s Viking and Acorn CCS projects and the development of the carbon capture and storage industry in the º£½ÇÊÓÆµ. It is also a further demonstration of the key role that the oil and gas sector is playing by using our existing infrastructure, skills and experience to build this new industry and help deliver the energy transition.
“Viking has the potential to be transformational for the Humber, the º£½ÇÊÓÆµ’s most carbon intensive industrial region, creating thousands of jobs in the area and playing a vital role in supporting the º£½ÇÊÓÆµ to meet its target to capture 30 million tonnes of CO2 annually by 2030.”
The step allows the project to move into front end engineering and design (FEED) and discussions with the government over the terms of the economic licences, ahead of final investment decisions.
Last month saw a strong final policy push from partners at an event at Phillips 66 Humber Refinery - an anchor partner in the Humber Zero feed projects. ABP's Immingham Green Energy Terminal is also progressing through its planning examination. In April BP bought a 40 per cent stake in Viking.
Investment of up to £7 billion across the full CO2 capture, transport and storage value chain between 2025 and 2035 has been eyed for Viking, creating more than 10,000 jobs during construction and providing a £4 billion economic boost to the region.
Today’s announcement from the Department for Energy Security and Net Zero was described as aligning with the Review of Net Zero chaired by Chris Skidmore MP, a recent Humber visitor, which included a recommendation that government should take a pragmatic approach to cluster selection by allowing the most advanced clusters to progress more quickly.
In a statement, the Government said: “We recognise the importance of providing further certainty for industry and we will work with other transport and storage systems on future opportunities through the government’s CCUS programme.
“Later this year, we will publish a vision for the º£½ÇÊÓÆµ CCUS sector, setting out how CCUS will support our net zero ambitions, to raise confidence and improve visibility for investors. Engagement with industry about future plans will continue, and extensive meetings are being held today as part of that.”