Harbour Energy PLC (LSE:HBR) and BP PLC (LSE:BP.) have joined forces to develop the Viking carbon capture transportation and storage (CCS) project in the Humber.
Under the deal, Harbour Energy will continue as operator of Viking CCS with a 60% holding while BP will take a 40% non-operated stake.
Viking CCS has the potential to meet one third of the UK Government's target to capture and store up to 30mln tonnes of CO2 a year by 2030, a statement from both oil firms and gas firms said.
The announcement follows the 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.
The delivery of the Viking project could unlock up to £7bn of investment across the full CO2 capture, transport, and storage value chain over the next decade, creating over 10,000 jobs during construction, and providing an estimated £4bn of gross value add to the Humber and its surrounding areas, Harbour and BP said.
The two groups already share an interest in the Lincolnshire Offshore Gas Gathering System pipeline which is intended to be repurposed as part of the project which provides a low-cost opportunity to connect customers to the depleted Viking gas fields.
Viking CCS also has access to a planned new CO2 shipping terminal at Associated British Ports' Port of Immingham to help ship CO2 elsewhere in the UK or internationally.
Subject to the outcome of the Track 2 Cluster Sequencing Process, a final investment decision is expected in 2024.
The project could be operational as early as 2027 and potentially storing up to 10mln tonnes of CO2 per year by 2030.
Linda Cook, CEO of Harbour Energy, commented: “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."