BP Buys Stake in Viking CCS Project in the U.K.

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Oil and gas major BP plc (NYSE:BP) (London, England) has bought a major stake in the Viking carbon capture and storage (CCS) project in the U.K.

Located in the heavily industrialized Humber region, Viking CCS--formerly the V Net Zero Cluster--has the potential to capture and store up to 10 million tonnes per year (Mpty) of CO2 by 2030--one-third of the U.K. government's target of 30 Mtpy. Harbour Energy will continue as operator of Viking CCS with a 60% stake, while BP has acquired a 40% non-operated share. The decision comes shortly after the government launched Track 2, the second phase of its CCS cluster sequencing process, which recognised Viking CCS as one of two leading transport and storage system contenders for this process--alongside the Acorn project. In Track 1, the Hynet and East Coast Cluster projects were recognized.

Harbour and BP already share an interest in the Lincolnshire Offshore Gas Gathering System (LOGGS) pipeline, which is intended to be repurposed as part of the project. The partners claimed that the pipeline provides a "low-cost opportunity to connect customers to the depleted Viking gas fields," which recently had their 300 million tonnes of CO2 storage capacity independently verified.

Anja Dotzenrath, executive vice president of Gas and Low Carbon Energy BP, said: "We're extremely excited to be joining Viking CCS, a project which can play an instrumental role in helping to decarbonise the U.K. and providing CO2 transport and storage as a service to emitters across industry sectors and geographies, including as a future CO2 shipping destination."

"I welcome the U.K. government's recent announcement about the launch of Track 2 and the addition of bp as a partner to this transformational project," added Linda Z. Cook, chief executive officer of Harbour Energy. "Viking CCS has the potential to unlock billions of pounds of investment across the full CCS value chain and is crucial for the U.K. to meet its emissions reduction targets."

The Viking CCS project also has access to a planned new CO2 shipping terminal at Associated British Ports' Port of Immingham, with the potential for shipped CO2 from the U.K. and international emitters to be transported for permanent storage within the Viking fields. Viking CCS forms the backbone of a wide range of associated CO2 projects located in the Humber industrial region and the Port of Immingham. Industrial Info is tracking 17 projects associated with Viking CCS from a number of power, refining and industrial companies worth a combined US$1.5 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).