The UK government recently initiated the first tests for injecting CO2 into depleted wells under the North Sea, signaling its strong support for carbon capture and storage projects. Carbon Catalyst, a UK company founded in 2020, partnered with Perenco UK to conduct the initial test at the Project Poseidon site. Wintershall Dea, a German gas and oil producer, also joined the project by acquiring a 10 percent working interest from Carbon Catalyst. The UK government awarded Carbon Catalyst three Carbon Dioxide Appraisal and Storage Licenses in August 2023, allowing the company to build its portfolio and focus on the Poseidon site, which includes depleted gas reservoirs and saline aquifers for CO2 injection.
The Poseidon project aims to have an initial annual injection capacity of 1.5 million tonnes of CO2, with plans to scale up to an ultimate annual injection rate of 40 million tonnes. With a potential storage capacity of 1 billion tonnes, Poseidon is positioned to become one of the largest Carbon Capture & Storage projects in Northwest Europe. Following the successful injection test, the Poseidon Joint Venture is moving towards a Final Investment Decision (FID) expected in 2027, with commercial CO2 injection for permanent storage potentially starting in 2029 and running for 40 years. Carbon Catalyst also plans to expand its portfolio with projects across the North Sea, including the Orion site near the Humber region of England.
In a significant milestone for carbon capture and storage efforts, Denmark completed the world’s first injection test at the INEOS-led pilot Project Greensand in 2023, located in the North Sea. Norway’s Northern Lights project has also made progress, with the recent completion of testing and building of its terminals. The Norwegian project received its first two CO2 transport vessels and is currently in the commissioning phase before starting commercial CCS operations. These developments highlight the growing momentum and commitment towards reducing carbon emissions through innovative carbon capture and storage technologies in the North Sea region.
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