UK-headquartered independent Harbour Energy and compatriot supermajor BP have agreed to jointly develop the Viking carbon capture and storage (CCS) project in the UK.

Harbour on Tuesday confirmed that BP has agreed to acquire a 40% non-operated interest in the Viking CCS project. Located near to the industrialised Humber region, Viking CCS has the potential to meet one third of the UK Government’s target to capture and store 30 million tonnes per annum of CO2 by the end of the decade. Harbour will remain as operator with the majority 60% stake.

Harbour noted its announcement follows the UK government’s recent decision to launch Track 2 of its CCS cluster sequencing process, and its recognition that Viking CCS is one of two leading transport and storage system contenders for this process. Subject to the outcome of the UK government’s Track 2 Cluster sequencing process, the final investment decision for Viking CCS is expected in 2024. The project could be operational as early as 2027 and potentially storing up to 10 million tonnes of CO₂ per year by 2030.

Transformation potential

The CCS Viking project could be transformational for the region, potentially unlocking up to £7 billion ($8.7 billion) of investment across the full CO₂ capture, transportation and storage value chain over the next decade, creating over 10,000 jobs during construction and providing an estimated £4 billion of gross value add to the Humber and its surrounding areas, said Harbour.

“We welcome the UK government’s recent announcement about the launch of Track 2 and the addition of BP as a partner to this transformational project. Viking CCS has the potential to unlock billions of pounds of investment across the full CCS value chain and is crucial for the UK to meet its emissions reduction targets,” said Linda Cook, Harbour chief executive.

The two companies already share an interest in the Lincolnshire Offshore Gas Gathering System (LOGGS) pipeline, which is intended to be repurposed as part of the project. This provides a unique, low-cost opportunity to connect customers to the depleted Viking gas fields, which recently had their 300 million tonnes of CO₂ storage capacity independently verified, added Harbour.

“Our entry into Viking CCS demonstrates BP’s commitment to Backing Britain through substantial investment and helping the country achieve its net zero goals. Viking CCS could help create thousands of new local jobs and enable supply chains that support growth of CCS in the UK,” commented Louise Kingham, SVP Europe and head of country UK for BP.

Viking CCS also has access to a planned new CO₂ shipping terminal at Associated British Ports’ Port of Immingham, with the potential for shipped CO₂ from dispersed emitters elsewhere in the UK and internationally to be transported for permanent storage within the Viking fields.

“We’re extremely excited to be joining Viking CCS, a project which can play an instrumental role in helping to decarbonise the UK and providing CO₂ transport and storage as a service to emitters across industry sectors and geographies, including as a future CO₂ shipping destination,” said Anja Dotzenrath, BP’s executive vice president of gas and low carbon energy.