Italian energy services company Saipem has secured a major contract from Eni to support a carbon capture and storage (CCS) project off the coast of northern England.
The €520 million (~$590 million) deal covers work on the Liverpool Bay CCS initiative, which is slated to be completed over three years. This project is central to the HyNet industrial cluster, positioned in one of the UK’s most carbon-intensive regions.
Under the plan, carbon dioxide captured from industrial sites across North West England and North Wales will be funneled through a combination of new and upgraded infrastructure to depleted gas reservoirs beneath the Irish Sea, owned by Eni.
Saipem’s responsibilities include the engineering, procurement, construction (EPC), and commissioning support for a new CO2 compression station at Point of Ayr in North Wales.
The facility will replace a traditional gas processing plant and integrate with both offshore and onshore components of the network, enabling permanent CO2 storage beneath Liverpool Bay in fields such as Hamilton, Hamilton North, and Lennox.
The construction effort is expected to create over 1,000 local jobs. Saipem noted the project will play a critical role in helping the UK’s industrial sector curb emissions and advance national net-zero ambitions.
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As part of the broader development, existing offshore platforms will be retrofitted, 149 kilometers (92.6 miles) of pipeline infrastructure will be repurposed, and an additional 35 kilometers (22 miles) of new pipelines will be laid to connect industrial carbon sources to the network.
The award follows Eni’s recent financial close with the UK Department for Energy Security and Net Zero (DESNZ), which greenlit the transition to construction.
Shortly afterward, Eni also received three carbon storage licenses from the North Sea Transition Authority (NSTA), covering the creation of a 109 million ton CO2 storage system over the next quarter-century.
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