Sumitomo subsidiary enters UK carbon storage sector
Carbon Catalyst has entered into an agreement with Summit Energy Evolution Limited (SEEL), a wholly owned subsidiary of Sumitomo Corporation, for the farmout of a 10% interest in a North Sea carbon capture and storage (CCS) project.
Carbon Catalyst announced it had reached an agreement with SEEL to farmout a 10% working interest in the Orion carbon storage licence located in the Southern North Sea sector of the UK Continental Shelf.
Orion is said to mark SEEL’s entry into the UK carbon storage sector. The farmout agreement is subject to regulatory approval.
The project consists of two carbon storage licenses, CS017 and CS018, which cover the Perenco UK (PUK)-operated and decommissioned Amethyst and depleted West Sole gas fields, the most geographically proximal offshore storage sites to Humberside, the UK’s largest industrial cluster, and directly connected by pipeline to the PUK-operated onshore Dimlington Gas Terminal.
The project is designed to deliver an initial injection capacity of 1 million tonnes per annum (Mtpa), rising to 6 Mtpa, and is expected to commence injection in 2031.
“CCL is very pleased to welcome SEEL to the Orion CCS project. SEEL not only brings extensive experience from its former activities in the UK oil & gas sector and leadership of the Bacton Energy Hub, but also leverages Sumitomo Corporation’s global energy transition activities across shipping, hydrogen production and transportation, alternative sustainable fuels and energy transition infrastructure,” said Henry Morris, Executive Director at Carbon Catalyst.
Carbon Catalyst recently completed the farmout of a 10% interest in the Poseidon carbon storage license in the UK North Sea to Wintershall Dea.