- The UK government and Eni have agreed to launch the Liverpool Bay carbon capture project as part of a £21.7 billion CCS initiative.
- The Liverpool Bay project will anchor the HyNet CCS Cluster, with Eni as the CO₂ transport and storage operator.
The British government and Italian energy company Eni signed an agreement on Thursday, April 24. This agreement will allow construction to begin on the Liverpool Bay carbon capture and storage (CCS) project.
Last year, the UK government committed up to £21.7 billion ($28.76 billion) in funding over 25 years to support CCS initiatives to reduce industrial emissions and create jobs in northern England. The Liverpool Bay project is part of this national plan and is set to play a major role in cutting emissions in a key industrial region of the UK.
The project will transport carbon dioxide (CO₂) from industrial sites across northwest England and north Wales to Eni’s depleted gas fields in Liverpool Bay. This will involve a combination of new and repurposed infrastructure. According to Eni, the project includes the construction of 35 km (22 miles) of new pipelines to connect industrial facilities directly to the CCS network.
Eni did not disclose the financial specifics of the agreement but confirmed that the Liverpool Bay development will serve as the foundation of the HyNet CCS Cluster. The company will operate the CO₂ transport and storage system.
The UK government and Eni see the initiative as a key step in reducing emissions from energy-intensive industries and moving the country closer to its net-zero emissions target by 2050.
The International Energy Agency supports CCS as a crucial technology for achieving global climate targets. However, critics argue that CCS may prolong reliance on fossil fuels and question its commercial viability.
Sources told Reuters that Eni also plans to create a standalone CCS division and is currently in talks with several parties interested in acquiring a minority stake in the business. Beyond the UK, the company is developing additional CCS projects, including one in Italy in partnership with gas grid operator Snam.