Offshore Technology

Daily Newsletter

10 August 2023

Daily Newsletter

Stanlow Terminals and Eni UK team up for carbon collection and storage

Eventually, numerous emitters will be connected to Eni UK's authorised storage location.

Energy company Eni UK and Stanlow Terminals, a bulk liquid storage provider, have signed a memorandum of understanding (MoU) to work on carbon dioxide (CO₂) collection, transportation and storage projects.

Under the MoU, the parties will explore the feasibility of setting up an open-access CO_₂ transport and storage terminal at Stanlow Terminal’s location.

The terminal will receive, collect, and store CO₂ from industrial emitters and other sources by shipping from dispersed sites.

From there, the incoming CO_₂ will be sent to Eni UK's infrastructure for transporting and storing carbon, which is currently being built in the northwest of the UK.

As per the plan, eventually, numerous emitters will be connected to Eni UK's authorised storage location through an open-access system, permitting the sequestration of CO_₂ in the future.

Stanlow Terminals stated that the development of CO₂ ship transportation will allow a lot more industrial businesses to transport CO_₂ for storage in exhausted gas fields.

Stanlow Terminals Michael Gaynon CEO said: "This memorandum of understanding is the latest milestone in Stanlow Terminals' ongoing commitment to leading the UK's low carbon transformation. As part of Essar Energy Transition, investing in energy transition infrastructure, we are building on our expertise in collection, storage and shipping and putting the North West economy at the forefront of the UK's energy transition to net zero."

Stanlow Terminals is a component of Essar Energy Transition (EET), which was established in February 2023.

EET plans to invest $3.6bn (£2.84bn) over five years in the development of a variety of low-carbon energy transition projects, of which $2.4bn will be spent at its locations in the northwest of England.

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.