Eni and UK government close deal on HyNet CCS project in Liverpool Bay

Energy company Eni has reached financial close with the UK Government’s Department of Energy Security and Net Zero for the Liverpool Bay CCS project.

The financial close allows the project to move into the construction phase, which will further unlock investments in local supply chain contracts.

The Liverpool Bay CCS project will operate as the backbone of the HyNet Cluster to transport carbon dioxide from capture plants across the North West of England and North Wales. The CO2 will be transported through new and repurposed infrastructure to permanent storage in Eni’s depleted natural gas reservoirs, located under the seabed in Liverpool Bay.

The project foresees the repurposing of part of the offshore platforms, as well as 149km of onshore and offshore pipelines, and the construction of 35km of new pipelines to connect industrial emitters to the Liverpool Bay CCS network.

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The UK Secretary of State for Energy Security and Net Zero, Ed Miliband, commented on the announcement: “Today we keep our promise to launch a whole new clean energy industry for our country - carbon capture and storage - to deliver thousands of highly skilled jobs and revitalise our industrial communities. This investment from our partnership with Eni is government working together with industry to kickstart growth...”

Eni CEO Claudio Descalzi added: "The strategic agreement with the UK Government paves the way for the industrial-scale development of CCS, a sector in which the United Kingdom reaffirms its leadership thanks to the promotion of a regulatory framework that aims to strengthen the development of CCS and make it fully competitive in the market.

Eni has established itself as a leading operator in the UK thanks to its key role in CO2 transport and storage activities as the leader of the HyNet Consortium, which will become one of the first low-carbon clusters in the world."

The HyNet CCS Cluster should significantly contribute to the reduction of emissions from a wide range of industries across the North West of England and North Wales. This includes companies involved in cement manufacturing, energy from waste plants, low-carbon hydrogen production, as well as additional industrial players who will connect to Eni’s infrastructure.

With a storage capacity of 4.5 million tonnes of CO2 per year in the first phase, and the potential to increase to 10 million tonnes of CO2 per year in the 2030s, Eni’s CO2 T&S system will make a significant contribution towards achieving the UK’s CCS ambitions.

Construction of the project is expected to commence this year, ready for planned start-up in 2028, in line with industrial emitters in the HyNet Cluster.

Responding to the confirmation of the Hynet North West industrial cluster, Elliot Renton, CEO of Evero Energy, said: “This is a big moment for the UK’s industrial future. The North West has powered the economy for generations, and today’s Hynet FID provides a clear route to delivering high-quality negative emissions while staying competitive in a world that needs to rapidly decarbonise.

"Evero has been part of this region's story since 2015. Our InBECCS project sits adjacent to the confirmed pipeline, making it a natural fit for the cluster. We’re working towards our own FID in 2026, with plans to be operational from 2029, delivering over 200,000 tonnes of carbon removals every year.

"This will be the UK’s first Greenhouse Gas Removals (GGR) project - cutting emissions and driving clean growth. With the expertise, infrastructure and momentum in place, Britain has everything it needs to achieve its net zero ambitions.”

This announcement follows the UK Government’s funding allocation of £21.7 billion ($29 billion) to be invested over a 25-year period across the first two CCS Clusters in the country, the East Coast Cluster and HyNet North Cluster.