Mumbai: Stanlow Terminals Ltd, part of Essar Energy Transition (EET), has signed a Memorandum of Understanding (MoU) with Eni UK Ltd, the British subsidiary of global energy company Eni, to explore the development of carbon dioxide (CO2) collection, shipping, and storage at the terminal and then delivery into Eni UK’s carbon transport and storage infrastructures currently being developed in the NW region of the UK.
Stanlow Terminals and Eni UK will evaluate opportunities to establish an open-access CO2 transport and storage terminal capable of receiving, gathering, and storing CO2 from industrial emitters and other sources via shipping from dispersed locations, according to a company release on Tuesday.
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.
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 agreement follows Stanlow Terminal’s 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.
Launched in February 2023, EET is investing US$3.6 billion in developing a range of low-carbon energy transition projects over the next five years, of which US$2.4 billion will be invested 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 program will play a major role in accelerating the UK’s low-carbon transformation, supporting the government’s decarbonization policy, and creating highly skilled employment opportunities at the heart of the Northern Powerhouse economy, the company said.
Stanlow Terminals is the largest independent bulk liquid storage business in the UK, with 3 million cubic meters of capacity. With eight jetties and deep water facilities, it offers flexible and efficient import and export of bulk liquids. Its multi-modal distribution network includes Europe’s largest road terminal, rail connectivity, excellent links to the UK’s motorway network, and pipeline connections to deliver energy products into the UK.
(VP)