Oilex awaits licence for carbon capture and storage project in UK
Australia-based and AIM-listed Oilex, which has been focusing on carbon-neutral gas production in conjunction with carbon capture and storage (CCS), is hoping to get a licence from the UK authorities, which would enable it to move forward with its proposed Medway Hub CCS project in the UK.
As part of the project, the captured CO2 would be stored in depleted gas fields off the UK.
The Medway Hub CCS project provides for the capture and transportation of CO2 emissions from coastal CCGT power stations in liquid form by marine tanker to a floating injection, storage and offloading vessel (FISO) from which the CO2 would be injected into the Esmond and Forbes depleted gas fields, which are situated in the UKCS, for permanent sequestration.
According to Oilex’s previous statements, the Esmond field alone has the potential to store more than 50 million metric tons of CO2.
The company has applied for a CCS licence via the Oil and Gas Authority’s nomination process to store CO2 in these two depleted gas fields with hopes to be granted the licence in the coming months.
A pre-FEED study has been completed by Axis Well Technology, which confirms the technical viability of the project as well as providing scoping economics.
The CCS project is contemplated to be a merchant scheme whereby emitters would pay for the capture, transportation and storage of CO2 from CCGT power station emissions under a long-term contract, instead of incurring the cost of carbon allowances.
The CCS project is subject to contracts with carbon emitters, regulatory approvals, and funding. In addition, a full FEED study will be required to further refine all of the technical aspects of the project and the project costings and economics in order to prepare for a final investment decision.
Oilex’s Chief Executive Officer, Roland Wessel, said: “The Medway Hub CCS project leverages the Oilex personnel’s extensive gas storage experience and represents an innovative and significant solution in helping to achieve the UK’s target of carbon net-zero by 2050.”