Humber boost as BP backs Viking carbon capture project
Humber gets boost as BP backs Viking project to capture and store carbon dioxide emissions
BP has committed to a massive project to capture and store carbon dioxide (CO2) emissions in the North East of England.
The FTSE 100 energy giant has signed an agreement with Harbor Energy, the North Sea’s largest oil and gas producer, to develop the Viking carbon capture and storage (CCS) project, giving it a 40 percent stake in the company takes.
Harbor will own the remaining 60 per cent and will lead the £7 billion project, which is estimated to have the potential to store up to 10 million tonnes of CO2 per year by 2030.
Green dream: BP has signed an agreement with Harbor Energy, the North Sea’s largest oil and gas producer, to develop the Viking carbon capture and storage (CCS) project
Carbon capture is a process of separating CO2 from other gases produced by power plants when fossil fuels are burned to generate energy.
It is then pumped deep into submarine caves once filled with oil, gas or water with the expectation that it will remain there for hundreds of years.
Carbon capture is a key part of the UK’s plans to reach net zero by 2050, with energy security minister Grant Shapps last month claiming that Britain could absorb most of Europe’s CO2 produced over the next 250 years under the North Sea. save.
The Viking project, which will be based in the Humber region, is expected to create 10,000 jobs during construction and has the potential to meet a third of the government’s target of 30 million tonnes of CO2 per year by 2030 to catch.
It will absorb emissions captured from emitters in the area, such as oil refineries and gas-fired power plants, which will then be piped for storage under the seabed.
“Viking CCS has the potential to unlock billions of pounds of investment across the full CCS value chain and is critical for the UK to meet its emissions reduction targets,” said Linda Cook, chief executive of Harbor Energy.
Louise Kingham, BP’s head of country for the UK, added: ‘Our entry into Viking CCS demonstrates BP’s commitment to supporting Britain through substantial investment and helping the country reach its net zero targets.’
BP shares rose 1 percent, or 5.1 pence, to 537 pence and Harbor fell 0.6 percent, or 1.6 pence, to 286.4 pence.
The deal will help expand BP’s role in the UK’s carbon capture industry as the oil giant looks to diversify its business away from fossil fuel extraction without sacrificing huge profits.
The company is already a key player in the UK’s effort to develop a carbon capture industry.
Last month, BP was one of several companies whose projects were selected to receive £20 billion in government funding to boost growth in the sector.
But the technology is not without skepticism, with some scientists warning that carbon capture has never worked on a large scale before and that the billions of pounds of funding could have been invested in renewable energy instead.