Saipem Wins €520m Liverpool Bay Carbon Capture Project Contract

Italian-based offshore engineering and construction company, Saipem, has won the 3-year contract by Eni to work on the Liverpool Bay Carbon Capture and Sequestration (CCS) project, estimated at a value of €520m.

The focus of the project is the conversion of a traditional Gas Compression and Treatment facility based in North Wales, transforming it into a CO2 Electrical Compression station. This change allows for the permanent storage of carbon dioxide in offshore depleted fields under Liverpool Bay.

The new facility is expected to integrate with both offshore and onshore segments of the project, enabling Liverpool Bay CCS project to serve the HyNet industrial cluster.

Expectations for the project will see a reduction in emissions from industries across North West England, and North Wales.

The awarded contract follows news that Eni has reached financial close with the UK Government’s Department of Energy Security and Net Zero (DESNZ) for the Liverpool Bay CCS project. Eni will act as the operator of the CO2 transport and storage system of the HyNet industrial cluster.

This financial close has enabled the project to move up to the construction stage, which should employ approximately 2,000 people.

CEO of Eni, Claudio Descalzi, said:

“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.

CCS will play a crucial role in tackling the decarbonisation challenge by safely eliminating CO2 emissions from industries that currently do not have equally efficient and effective solutions. Eni confirms its position at the forefront in the creation of this new, highly sustainable business linked to the energy transition”.

HyNet will serve as one of the most advanced CCS Clusters in the world, significantly contributing to the reduction of emissions across a range of industries.