© Supplied by HyNet 
The UK energy sector has welcomed a financial deal between the Labour government and Eni covering the HyNet carbon capture and storage (CCS) project.
Located in north west England, the HyNet North West project will see CO2 emissions captured from industrial emitters around Liverpool and Manchester.
The HyNet project will then transport the captured CO2 for offshore storage in the Liverpool Bay.
The plans also include blue hydrogen production, hydrogen storage and a hydrogen pipeline to decarbonise various industrial processes in the region.
Alongside Eni, partners in the £2 billion HyNet project include EET Hydrogen, cement producer Heidelberg Materials and waste management firm Viridor.
Construction of the Liverpool Bay CCS network will support close to 2,000 direct jobs as well as safeguarding an estimated 350,000 industrial jobs in the region.
UK energy secretary Ed Miliband said the government is “backing our engineers, electricians and welders” and delivering “thousands of highly skilled jobs”.
Meanwhile, Eni chief executive Claudio Descalzi said the agreement with the UK government “paves the way for the industrial-scale development of CCS”.
The agreement covering the HyNet project follows a similar deal reached between the government and the backers of a £4bn CCS project in Teesside.
Led by BP, Equinor and TotalEnergies, the Northern Endurance Partnership forms part of the East Coast Cluster, one of two so-called Track-1 Clusters alongside HyNet.
The financial deals come after the government last year pledged nearly £22 billion for HyNet and the East Coast Cluster over 25 years.
‘Landmark moment’ for UK CCS
Trade body Offshore Energies UK (OEUK) said the HyNet project will play a “vital role” in decarbonising and safeguarding existing industries while “creating significant opportunities for the UK’s energy supply chain”.
OEUK chief executive David Whitehouse said the progression of the Liverpool Bay project is a “landmark moment” for the UK’s CCS sector.
“Eni’s leadership as transportation and storage operator showcases how our existing offshore expertise is being deployed to deliver climate solutions,” He said.
© Supplied by Eni“Today’s announcement means that both Track-1 clusters (Hynet & East Coast) will commence construction this year.”
Calls for Acorn and Viking support
Whitehouse also called for the UK government to provide a “firm commitment” to support to the Track-2 CCS clusters, including the Acorn project in Scotland and Harbour Energy’s Viking CCS in the Humber.
He said Acorn and Viking are “vital to establish a robust CCS sector” alongside a range of other UK projects currently in development.
“As we set out in an independent report published yesterday, a self-sustaining CCS industry is achievable by the 2030s – but only if all four clusters move ahead to gain momentum, reduce costs and incorporate learnings,” Whitehouse added.
“We look forward to continued collaboration across industry and government to accelerate the delivery of this critical infrastructure across the UK.”
‘We must not forget Scotland’, Storegga says
Meanwhile, a major backer of the Acorn CCS project warned there is a risk that Scotland is “being left behind” by the UK government.
Storegga chief executive Tim Stedman said while the HyNet announcement is “positive news”, the UK government “must not forget Scotland”.
“Only Acorn and the Scottish Cluster can unlock Scotland’s industrial decarbonisation at scale — attracting investment, creating jobs, repurposing oil and gas assets, leveraging supply chains, and upskilling thousands of workers,” Stedman said.
© Supplied by Shell“It is central to a just transition for the North Sea and vital to the UK’s decarbonisation goals.
“If the UK is serious about a just and balanced transition and attracting investment for growth, progress in England must be matched by clarity and commitment in Scotland.
“Otherwise, we risk leaving behind not just emissions, but jobs, value, and economic opportunity.”
Carbon Capture and Storage Association (CCSA) chief executive Olivia Powis also called on the UK government to advance the next stage of CCS clusters.
“These steps will unlock the full growth potential of deploying CCUS at scale, including the potential for 50,000 jobs centred in our declining industrial heartlands,” she said.
“At the same time, it will enhance energy security, drive progress toward net zero targets, and be the central backbone to the UK’s Industrial Strategy.”
Carbon storage a ‘vital cog’ in clean energy future
The North Sea Transition Authority (NSTA) said the agreement with the UK government will see Eni begin preparing for the initial injection of 4.5 million tonnes of CO2 per year, starting as soon as mid-2028.
The NSTA said phase one of HyNet is designed to store 109 million tonnes of CO2 in the East Irish Sea, 20 miles off the coast of Liverpool.
Over the project’s 25 year lifespan, it will store the equivalent of taking 60.1 million cars off the road for a year, the NSTA said.
To reach its 2050 net zero targets, the NSTA said it estimates the UK will need to appraise around 100 stores, calling carbon storage a “vital cog” in the country’s clean energy future.
© HyNetNSTA chief executive Stuart Payne praised the work of the regulator for helping to “turn ambitions for carbon storage into a reality”.
“These permits for HyNet, following hot on the heels of the one awarded for Endurance, are another significant milestone that puts the tremendous opportunities of the energy transition within the UK’s grasp,” he said.
“We’ve now got two major carbon storage projects with real investment and real jobs for our expert supply chain to get its teeth into.”
‘Big moment for the UK’s industrial future’
The HyNet Alliance of firms behind the project said its delivery will secure £5bn of private sector capital to “enable re-industrialisation of the region”.
HyNet Alliance chairman David Parkin said the project will “create new roles and safeguard existing jobs, attracting investment and catalysing growth”.
“HyNet was formed to meet the demands of industry wanting to decarbonise to deliver
sustainable products and compete in the global low carbon economy,” he said.
“We need to decarbonise, not by de-industrialising, but by investing in the industries of the future that we rely on for the everyday products in our lives – from the glass bottles we use for our food and drink to the cement we use to build roads and buildings.”
Meanwhile, confirmation of the HyNet industrial cluster has also been welcomed by waste-wood-to-energy firm Evero Energy.
Evero is progressing two bioenergy with CCS (BECCS) plants as part of the HyNet cluster, and the firm’s chief executive Elliot Renton called the project a “big moment for the UK’s industrial future”.
“The North West has powered the economy for generations, and today’s Hynet [final investment decision] provides a clear route to delivering high-quality negative emissions while staying competitive in a world that needs to rapidly decarbonise,” he said.
© Supplied by Evero EnergyEvero aims to reach a final decision on its Ince Bio Power project in 2026, with plans to be operational by 2029.
Renton said the plant will be the UK’s first greenhouse gas removals (GGR) project, although the BECCS technology has attracted criticism from environmentalists over its sustainability credentials.
Industrial cluster Net Zero North West chief executive Jane Gaston said CCS is a key solution for decarbonising the UK and the region.
“Today marks a huge step forward for UK energy independence, industrial decarbonisation, global industrial competitiveness, regional investment and future regional job creation,” Gaston said.
“This exciting step is welcome news for the North West England and North East Wales, safeguarding existing industrial employment and creating new production chains and jobs for the region.”
HyNet a ‘game changer for industry’
EET Hydrogen, which is progressing the HPP1 project at its Stanlow refinery, also welcomed confirmation of HyNet.
The HPP1 project is one of four initial projects that will provide CO2 to this infrastructure for permanent storage.
Essar Energy Transition managing partner Tony Fountain said the HyNet CO2 pipeline is a “game changer for industry” in the north west of England.
“This presents huge opportunities for the future growth of north west businesses and ensures Stanlow can pursue its goal of being one of Europe’s leading decarbonised refineries, providing the UK with fuel security for many years,” Fountain said.
EET Hydrogen chief executive Joe Seifert said the HyNet announcement “provides great momentum” as the company progress towards construction of its “flagship project”.
