Plans to transform Bacton Gas Terminal into an energy hub for carbon capture and storage have been given a boost, as nominations have opened for potential carbon storage locations in the UK.
Carbon capture and storage (CCS) prevents carbon dioxide, primarily produced by industry, from being released into the atmosphere by capturing and storing it underground.
The UK's oil and gas and CCS regulator, the North Sea Transition Authority (NTSA), has how opened nominations for potential carbon storage locations. This means energy companies can put forward areas of seabed that they hope to develop for CCS.
It could lead to more licenses for CCS being awarded in the southern North Sea near Bacton Gas Terminal on the north Norfolk coast, where there are plans for a CCS facility and hydrogen hub.
Bacton Gas Terminal (Image: Mike Page) The NSTA previously awarded 21 licenses in the UK’s first-ever carbon storage licensing round in 2023, with the sector hoping for a second licensing round later this year.
Energy companies Shell, Perenco and ENI were all awarded licenses off the coast of Norfolk.
However, while the government pledged £22bn of funding for CCS projects in Teeside and Merseyside last year, there was no mention of Bacton.
BACTON 'PERFECTLY POSITIONED'
Paul Lafferty, CEO of Summit Energy Evolution (SEEL), which is behind plans for the hub, said the more licenses that are awarded in the southern North Sea the greater the possibility of Bacton becoming a CCS and hydrogen facility.
Paul Lafferty, CEO of Summit Energy Evolution (SEEL) (Image: SEEL) “The beauty of Bacton is it could take so much of Europe’s CO2 because it is the closest geological store to northern Europe,” he said.
“There will be a role for Bacton to play in decarbonising the UK’s CO2 emissions, but equally it will be dwarfed by what could come in from Europe.
"I see Bacton as perfectly positioned to take maybe 30 or 40pc of its storage from the UK and the rest from Europe."
Bacton Gas Terminal (Image: Mike Page) Earlier this year, Perenco began the UK’s first carbon dioxide injection test for CCS in the Southern North Sea.
The test involved CO2 being injected into a depleted natural gas reservoir in the Leman gas field, 30 miles off the coast of Great Yarmouth.
Perenco and partners Carbon Catalyst Ltd and Harbour Energy are conducting the CO2 injection test as part of a joint venture known as the Poseidon project, which will fully commence by 2029.
The Poseidon project aims to deliver carbon capture and underground storage in the Leman gas field, commencing by 2029 (Image: Perenco) “The southern North Sea was extremely successful in the first licensing round," Mr Lafferty added.
"Four big stores got awarded, which are all in depleted gas reservoirs and once gas fields.
“I suspect when it comes to Bacton that the easy stuff has already been licensed, but there may still be other stores out there that people could be interested in and nominate.
“My expectation would be that the lion’s share of the licenses will go to the central North Sea, but there might still be a few that go to the southern North Sea - but not as many as last time, when the southern North Sea completely dominated the licensing round."
CREATE JOBS AND BOOST BUSINESS
Kevin Keable, chairman of the East of England Energy Group (EEEGR), said not only would it capture and store greenhouse gas emissions, but a CCS facility at Bacton would create jobs and work for businesses in the supply chain.
Kevin Keable, chairman of the East of England Energy Group (EEEGR (Image: Newsquest) "Bacton is ideally placed for pumping vast amounts of carbon under the North Sea," he said.
"We could pipe it across from Europe or any other industrial sector in the UK.
"If we could make Bacton an energy hub it would create jobs and the fabrication could be done locally, enhancing business.
"If it's going to be done anywhere, Bacton is the place to do it."