Humber boost as BP backs Viking carbon capture project

BP has thrown its weight behind a massive project to capture and store carbon dioxide (CO2) emissions in the North East of England.

The FTSE 100 energy major has signed a deal with Harbour Energy, the North Sea’s biggest oil and gas producer, to develop the Viking carbon capture and storage (CCS) project, which will see it take a 40 per cent stake in the venture.

Harbour will own the remaining 60 per cent and will run the £7billion project, which it is estimated will be able to store up to 10m metric tonnes of CO2 per year by 2030.

Green dream: BP has signed a deal with Harbour Energy, the North Sea’s biggest oil and gas producer, to develop the Viking carbon capture and storage (CCS) project

Carbon capture is a process that involves separating CO2 from other gases produced by power plants when fossil fuels are burned to generate energy. 

It is then pumped deep into undersea caverns that were once filled with oil, gas or water with the expectation it will remain there for hundreds of years.

Carbon capture is a key plank of the UK’s plans to reach net zero by 2050, with Energy Security Secretary Grant Shapps claiming last month that Britain could store most of the CO2 produced in Europe over the next 250 years under the North Sea.

The Viking project, which will be based in the Humber region, is predicted to create 10,000 jobs during its construction and has the potential to meet a third of the Government’s target to capture 30m tonnes of CO2 per year by 2030.

It will take emissions captured from emitters in the area, such as oil refineries and gas-fired power plans, which will then be shipped through a pipeline for storage below the seabed.

‘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 Harbour Energy boss Linda Cook.

Louise Kingham, BP’s head of country for the UK, added: ‘Our entry into Viking CCS demonstrates BP’s commitment to Backing Britain through substantial investment and helping the country achieve its net zero goals.’

BP shares inched up 1 per cent, or 5.1p, to 537p and Harbour dropped 0.6 per cent, or 1.6p, to 286.4p.

The deal will help expand BP’s role in the UK’s carbon capture industry as the oil giant looks to diversify its business away from fossil fuel extraction without sacrificing bumper profits. 

The firm is already a major player in the UK’s attempt to develop a carbon capture industry.

Last month, BP was among the firms whose projects were selected to receive £20billion in funding from the Government to boost growth in the sector.

But the technology is not without its sceptics, with some scientists having warned that carbon capture has never worked at scale before and that the billions of pounds in funding could instead have been invested in renewable energy.

This post first appeared on Dailymail.co.uk