The UK government, in collaboration with Italian energy company Eni, is set to announce on Thursday the final approval of a 38-mile pipeline aimed at capturing carbon dioxide from industrial plants in the Liverpool and Manchester areas for offshore storage. According to sources familiar with the initiative, this announcement coincides with a two-day energy security summit in London, attended by over 60 leaders.
The pipeline, developed by Eni, is a key component of HyNet North West—a comprehensive industrial cluster that will incorporate new hydrogen production plants to support local manufacturers. Proponents of the project assert that the initiative will enhance the security of the region’s 350,000 manufacturing jobs and generate £17 billion in economic value over the next quarter-century.
Initially, Eni plans to store 4.5 million tonnes of carbon dioxide annually in several depleted gas fields located 0.6 miles below the seabed of Liverpool Bay, with plans to increase capacity to 10 million tonnes after 2030. This amount equates to the annual emissions produced by approximately 4 million cars.
The UK government previously announced in October its intention to support HyNet, alongside another project on the east coast known as Net Zero Teesside, with nearly £22 billion over 25 years. Claudio Descalzi, Eni’s chief executive, referred to this backing as a “significant step” toward establishing a British carbon capture industry. The pipeline received planning permission in March, bringing it closer to final investment approval.
The government also indicated last October that the initiatives located in Merseyside and Teesside would stimulate growth in the industrial core areas of North-west and North-east England. However, concerns have been raised regarding the limited funding available for other carbon capture initiatives seeking government support, notably in regions such as the Humber and Scotland.
Eni chose not to provide comments at this time. Meanwhile, UK Prime Minister Keir Starmer has announced a £300 million investment for offshore wind projects, in anticipation of the government’s spending review outcome in June. The funding aims to reduce project risks for private investors and foster supply chains for emerging technologies, such as floating wind platforms.
Jim Pickard contributed additional reporting to this article.
