Stanlow Terminals, Eni UK sign pact to develop CO2 transport, storage projects

New Delhi: Stanlow Terminals Ltd, the UK's largest independent bulk liquid storage provider, has signed a Memorandum of Understanding (MoU) with the UK subsidiary of global energy company Eni to explore the development of carbon dioxide (CO2) collection, shipping, and storage.

"Stanlow Terminals and Eni UK will evaluate opportunities to establish an open-access CO2 transport and storage terminal which will be capable of receiving, gathering and storing CO2 from industrial emitters and other sources via shipping from dispersed locations," the company said in a statement.

The MoU is for exploring projects at the Stanlow Terminal location and then delivering the received CO2 into Eni UK's carbon transport and storage infrastructures currently being developed in the North West region of the UK.

"The objective is to ultimately connect multiple emitters with Eni UK's licensed storage location through an open access system, facilitating the future sequestration of substantial volumes of CO2," it said.

Stanlow Terminals is part of Essar Energy Transition (EET) - the special purpose vehicle floated by Essar group in February this year to develop a range of low-carbon energy transition projects over the next five years at an investment of USD 3.6 billion. Of this investment, USD 2.4 billion will be at its sites in the North West of England.

EET will include Essar Oil UK, the company's refining and marketing business in North West England; Vertex Hydrogen, which is developing 1 gigawatt (GW) of blue hydrogen for the UK market, with follow-on capacity set to reach 3.8 GW; EET Hydrogen India, which is developing 1 GW of green ammonia in India, targeted at UK and international markets; Stanlow Terminals Ltd, which is developing enabling storage and pipeline infrastructure; and EET Biofuels, which is investing in developing 1 MT of low carbon biofuels.

EET's investment programme will play a major role in accelerating the UK's low-carbon transformation, supporting the government's decarbonisation policy and creating highly skilled employment opportunities at the heart of the Northern Powerhouse economy.

"Developing CO2 ship transportation will play a significant role in the expansion of CCS infrastructure, by offering feasible and flexible routes between sources and storage sites. The infrastructure would provide many more industrial companies the opportunity to transport captured CO2 for storage in depleted gas fields," the statement said.

The MoU follows Stanlow Terminal's announcement of plans to also develop open-access green ammonia facilities on the River Mersey, supporting the ambition of Essar Energy Transition to become Europe's leading integrated energy transition hub.

Eni UK is leading the development of carbon dioxide transport and storage for the HyNet North West consortium in the North West of the UK.

Stanlow Terminals is the largest independent bulk liquid storage business in the UK, with 3 million cubic metres of capacity.