Eni: UK government green light for carbon capture and storage project funding

Eni gets the go-ahead from the UK government for funding for the Liverpool Bay CO2 transport and storage (T&S) project in the UK. The allocation of the resources is a strategic milestone and effectively marks the definitive take-off of the Ccs industry in the UK. The funding includes investments for industrial emitters in Track 1 and represents a key milestone towards the implementation phase of HyNet, which will unlock further significant investment in the area.

HyNet is one of the most advanced Ccs projects in the UK - with Eni as operator for the CO2 transport and storage system - and will help to safely cut emissions from hard-to-abate industries in the North West of England and North Wales with an initial storage capacity of 4.5 million tonnes of CO2 per year in the first phase, and a potential increase to 10 million tonnes of CO2 per year after 2030.

The project will make a significant contribution by reducing the impact of these industries and contribute to the UK's target of storing 20-30 million tonnes of CO2. The project will transform one of the country's most energy-intensive industrial regions into one of the world's first low-carbon industrial clusters through the re-use of depleted gas fields operated by Eni in Liverpool Bay. HyNet will not only secure local jobs by supporting the decarbonisation of hard-to-abate industries, but will also be able to maintain the country's industrial competitiveness in the long term by creating new production chains and jobs.

"Today's news represents an important step towards the creation of a new business chain related to the energy transition. HyNet will become one of the world's first low-carbon clusters and the project will decarbonise one of the world's leading energy-intensive industrial clusters, promoting significant economic growth in this region of the UK. Today's shared commitment is a concrete demonstration of how governments and industry can work together to implement efficient and pragmatic industrial policies to accelerate decarbonisation, and confirms Eni's role as a key partner in the country's move towards net zero," commented Eni's CEO, Claudio Descalzi.

"Monday marked the end of the coal era, a 150-year history in this country. Today a new era begins. With this funding, we pave the way for the clean energy revolution that will rebuild Britain's industrial heartland. I am proud to have kick-started this industry in 2009 and I am even prouder today to make it a reality. This funding is testament to the strength of an active government working in partnership with business to create good jobs for our communities," explained UK Secretary of State for Energy Security and Net Zero, Ed Miliband.