Equinor, BP, TotalEnergies seal investment into Britain's carbon capture projects
OSLO, Dec 10 (Reuters) -Norway's Equinor EQNR.OL alongside partners BP BP.L and TotalEnergies TTEF.PA, have taken the final investment decision for two of the Britain's first carbon capture and storage projects in northern England, they said on Tuesday.
The three companies are joint partners in the Northern Endurance Partnership Project (NEP) which will permanently store up to an initial 4 million tonnes of carbon dioxide per year.
Equinor has a 45% stake in NEP, with BP also holding 45% and TotalEnergies the remaining 10%.
Equinor and BP also partner on the Net Zero Teeside Power project for a 742-megawatts (MW) gas-fired power plant with carbon capture, with BP owning 75% and Equinor 25%.
"It is a major milestone to have agreed Final Investment Decision and financial close on two of the UK's first carbon capture, transport and storage infrastructure projects," said Irene Rummelhoff, executive vice president of Marketing, Midstream and Processing at Equinor.
The companies did not disclose the final investment figures, however.
Britain has a climate target to reach net zero emissions by 2050 and has said carbon capture and storage will be needed to curb emissions from energy intensive industrial sectors.
In October the government committed up to 21.7 billion pounds for carbon capture and storage projects, which it hopes will help to reinvigorate the country's industrial regions and provide much needed investment and jobs.
"This investment launches a new era for clean energy in Britain – boosting energy security, backing industries and supporting thousands of highly skilled jobs in Teesside and the North East," Britain's Energy Secretary Ed Miliband said in a separate statement.
Work on the projects is set to begin in 2025, with the Net Zero Teesside Power project, a 742-megawatt power plant, estimated to deliver power to an estimated one million homes from 2028, the British government said.
The investments into the carbon capture and storage projects directly support 2,000 jobs in the north east of England, with tens of thousands more across Britain in the coming years, it added.
The companies are also planning to award 4 billion pounds ($5.1 billion) worth of supply chain contracts driving growth and investment into the region, it said.
($1 = 0.7857 pounds)
Reporting by Nora Buli; Editing by Alex Richardson
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
