Wintershall Dea acquires stake in North Sea carbon storage project

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Wintershall Dea acquires stake in North Sea carbon storage project
Credit: © Reuters.

Wintershall Dea, the German oil and gas company, has expanded its portfolio in carbon capture and storage (CCS) by acquiring a 10% stake in the Poseidon carbon storage license in the Southern North Sea sector. The deal with Carbon Catalyst Limited (CCL) marks Wintershall Dea's fifth venture into North Sea CCS projects and their second within the UK Continental Shelf.

Fergus Marcroft of CCL expressed enthusiasm over the partnership, highlighting Wintershall Dea's proficiency stemming from their Greensands CCS project. Marcroft underscored the value of their expertise for the Poseidon initiative, which aims to connect CO2 emitters from East and Southeast England through the Bacton Gas Terminal. The project is ambitious, targeting operational status by 2029 and a potential to store up to one billion metric tons of CO2.

The Poseidon project's operations are centered around the Leman gas field in the UK Southern North Sea, approximately 65 km off the coast from Bacton. This area is characterized by depleted reservoirs and saline aquifers, making it an ideal location for safe and permanent carbon storage. The project aims to start with an injection rate of 1.5 million tpy, escalating to 10 million tpy by 2030, and peaking at 40 million tpy by 2040. A final investment decision is expected in 2026.

Wintershall Dea's commitment to CCS projects in the North Sea region is not new. In March 2023, they were instrumental in establishing Europe's first cross-border CCS value chain with INEOS, demonstrating CO injectivity using a Belgian emitter and storing CO safely at the Nini West oilfield. Earlier in February, Wintershall Dea was involved in the Greensands CCS project in the Danish North Sea, pioneering the first cross-border CO2 injectivity test.

The Poseidon project represents a significant step towards decarbonization on the UK Continental Shelf, reflecting an increasing industry focus on sustainable energy practices and greenhouse gas reduction. This project also marks a significant step towards decarbonizing East Anglia, Greater London, and southeast UK from 2029 onwards. Wintershall Dea now holds stakes in five offshore CCS licenses across three North Sea countries, underscoring its substantial role in regional carbon capture initiatives.

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