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BP acquires 40% stake in Harbour Energy's North Sea Viking CCS project


BP acquires 40% non-operating stake in project

Viking CCS expected to be operational in 2027

Project awaiting UK gov Track 2 CCS process outcome

  • Author
  • Hassan Butt
  • Editor
  • Daniel Lalor
  • Commodity
  • Energy Transition Natural Gas

BP has acquired a 40% non-operating stake in the North Sea Viking carbon capture and storage (CCS) project operated by UK energy company Harbour Energy, with the project expected to meet a third of the UK's CCS targets by 2030, Harbour Energy said April 11.

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The project was expected to be operational by 2027 and could contribute as much as one third to the UK government's target to capture and store up to 30 million mt/year CO2 by 2030, Harbour said.

Situated close to the Humber region of the North Sea, the Viking CCS project plans to transport CO2 through a newly constructed pipeline linking Immingham to Theddlethorpe, storing CO2 in secure offshore storage sites.

The pipeline will also repurpose the decommissioned Lincoln Offshore Gas Gathering System (LOGGS), also operated by both BP and Harbour, allowing for low-cost connectivity to some 300 million mt of storage capacity across the depleted Viking gas fields.

The project aims to transform Humber into the UK's first net-zero "SuperPlace," combining green energy generation and CCS infrastructure to develop a new energy ecosystem, according to Harbour.

Viking CCS also has access to a planned CO2 shipping terminal at Immingham, developed in partnership with Associated British Ports, which aims to connect both dispersed emitters in the UK and internationally to the Viking storage sites.

"Viking CCS could help create thousands of new local jobs and enable supply chains that support growth of CCS in the UK," BP's Senior Vice President for Europe and Head of Country UK, Louise Kingham said.

Platts assessed the cost of blue hydrogen (ATR with CCS, including capex, Netherlands), at Eur3.35/kg ($3.65/kg) on April 6.

It assessed the price of alkaline electrolysis hydrogen (including capex, Netherlands) at Eur6.45/kg.

A final investment decision on the project is expected in 2024, although it remains contingent on the outcome of the UK government's second phase, or 'Track 2' CCS cluster sequencing process launched last month, Harbour said.

The Track 2 process aims to establish two transport and storage (T&S) systems located within the UK, following on from the pre-established HyNet and East Coast Cluster (ECC) proposals, which form part of the Track 1 cluster.

As such, the government has recognized Viking CCS as one of two leading T&S system contenders in the process, with the other being the Scotland-based Acorn decarbonization infrastructure project.

Subject to the outcome of the Track 2 process, Viking CCS has the potential to unlock around GBP7 billion ($8.7 billion) of investment throughout the entire CO2 capture, transport, and storage value chain over the next decade, and could provide up to GBP4 billion in gross value added (GVA) to the Humber region, Harbour said.

"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," Harbour CEO Linda Cook said.

"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," Cook said.

Harbour has retained a 60% stake in the project.