Saipem Secures €520 Million Contract for Liverpool Bay CCS Project
Saipem has recently announced a significant win, securing a €520 million ($591.5 million) contract for the Liverpool Bay carbon capture and storage (CCS) project, in collaboration with Eni. This contract spans three years and stands as a pivotal development in the UK’s green energy landscape.
Supporting HyNet: A Step Towards Sustainability
The Liverpool Bay project is integral to the HyNet industrial cluster, located in one of the UK’s most energy-intensive regions. This area has been targeted for its potential to significantly reduce carbon emissions, marking it a key player in the UK’s green transition strategy.
Saipem’s primary role involves transforming an existing gas compression and treatment facility at Point of Ayr, North Wales, into a CO₂ electrical compression station. This conversion is essential as it will facilitate the permanent storage of CO₂ in depleted offshore fields beneath Liverpool Bay. By leveraging existing infrastructure, this project demonstrates not only innovative engineering but also a commitment to sustainability.
Comprehensive Scope of Work
The scope of Saipem’s responsibilities encompasses engineering, procurement, construction, and support with commissioning of the new electrical compression station. The integration of this facility with both offshore and onshore segments is crucial to ensuring the overall success and efficiency of the project.
Such large-scale projects can also have a significant societal impact. During the construction phase alone, it’s anticipated that over 1,000 jobs will be created, providing a boost to the local economy and fostering a skilled workforce in green technologies.
Emission Reductions and Future Prospects
The Liverpool Bay CCS project is poised to deliver substantial emissions reductions for industries in the Northwest of England and North Wales. It will capture CO₂ from local industrial emitters and transport it using newly repurposed gas pipelines. Initial users of Eni’s transport and storage (T&S) infrastructure will include companies involved in cement production, low-carbon hydrogen, and energy-from-waste initiatives.
This project is designed to roll out in stages, initially aiming for a capacity of 4.5 million tonnes of CO₂ per year, with plans to scale up to 10 million tonnes by the 2030s. Such ambitious targets underline the ongoing commitment to combat climate change and foster sustainable industry practices.
Strategic Partnerships for Local Development
In a recent development, Eni achieved financial closure with the UK government’s Department of Energy Security and Net Zero (DESNZ), allowing the construction phase to commence. This partnership not only enhances the project’s credibility but also stimulates investment within the local supply chain, potentially leading to a ripple effect of growth and innovation in the region.
By securing this contract, Saipem is solidifying its position within the CO₂ value chain while contributing to what is set to become one of the UK’s leading carbon capture and storage projects.
As the global need for sustainable solutions intensifies, projects like the Liverpool Bay CCS will be vital in helping countries meet their climate goals while fostering economic growth through green jobs and innovation.
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