Sumitomo, through its wholly owned UK subsidiary, Summit Energy Evolution (SEEL), has agreed to acquire a 10% stake in the Orion CCS licence in the southern North Sea sector of the UK Continental Shelf.
The stake will be acquired from UK-based CCS solutions company Carbon Catalyst (CCL).
The Orion project covers two carbon storage licenses, CS017 and CS018, in the UK southern North Sea. The licences cover the Perenco-operated and decommissioned Amethyst and depleted West Sole gas fields.
Sumitomo said that these fields are directly connected to the PUK-operated onshore Dimlington Gas Terminal via pipeline.
In a press statement, Sumitomo said: “In addition, CS017 and CS018 license area is close to Humberside, one of the largest industrial zones in the UK, so the transport from CO₂ emission sources to storage site is short, making it possible to provide highly cost-competitive CO₂ transport and storage services. The potential for the import of CO₂ from EU/EEA countries may be assessed in the future.”
The transaction is subject to regulatory approval.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Upon completion of the transaction, Carbon Catalyst and Summit Energy Evolution will each own a 10% interest. Perenco UK holds an operatorship stake of 80%.
The Orion CCS project is due to be commissioned by 2031 with an initial CO₂ injection capacity of one million tonnes per year. It is expected to have a CO₂ injection capacity of up to six million tonnes per year.
Sumitomo anticipates the project will contribute to the UK Government’s aim of having 20–30 million tonnes of storage capacity annually as of 2030.