The United Kingdom has taken a significant step toward its decarbonisation goals with the financial close of the Liverpool Bay Carbon Capture and Storage (CCS) project. Eni, as the operator of the CO₂ transport and storage (T&S) infrastructure within the HyNet industrial cluster, has confirmed the successful close in partnership with the UK Government’s Department for Energy Security and Net Zero (DESNZ). This marks a pivotal transition into the construction phase of one of the country’s most advanced CCS developments.
HyNet Cluster and the Liverpool Bay CCS Project
The HyNet Industrial Decarbonisation Cluster is one of the UK’s flagship initiatives aimed at reducing carbon emissions from some of the country’s most energy-intensive industries. Located across the North West of England and North Wales, the cluster brings together a network of industrial facilities, infrastructure developers, and energy producers to deliver a region-wide approach to decarbonisation.
Central to this effort is the deployment of carbon capture and storage (CCS) technologies and the production of low-carbon hydrogen. The cluster serves a wide range of emitters, including cement plants (such as the Heildeberg’s cement facility) , energy-from-waste facilities, chemical manufacturers, and hydrogen producers.
By connecting these sources to a shared CCS network, HyNet offers a scalable and cost-effective path for industry to meet net-zero targets. The project is also expected to generate significant employment and supply chain benefits for the region, positioning it as a leader in the UK’s clean energy transition.
Liverpool Bay CCS Project
At the heart of HyNet lies the Liverpool Bay CCS Project, a dedicated transport and storage system designed to capture CO₂ emissions from industrial sites and permanently store them offshore. Operated by Eni, the project involves repurposing depleted natural gas reservoirs beneath Liverpool Bay and integrating them with an extensive pipeline network—both newly constructed and adapted from existing infrastructure.
Once operational, the system will initially store up to 4.5 million tonnes of CO₂ per year, with potential expansion to 10 million tonnes annually by the 2030s.
Saipem as the EPC Contractor for Liverpool Bay CCS project
Following the financial close, Eni has awarded a major engineering contract to Saipem, valued at approximately €520 million. Saipem’s scope includes the Engineering, Procurement, Construction, and Commissioning (EPCC) support for a new CO₂ Electrical Compression Station located at Point of Ayr, in North Wales.
The facility is a critical component of the Liverpool Bay CCS project. It involves converting a traditional gas compression and treatment facility into a state-of-the-art CO₂ compression hub. The new station will serve as the onshore anchor for a broader CO₂ transport network connecting emission sources across the North West of England and North Wales to permanent storage sites beneath Liverpool Bay.
The project integrates both offshore and onshore infrastructure and will generate considerable employment benefits. During the peak construction period, over 1,000 local workers are expected to be engaged through Saipem’s contract alone, while the entire project is forecast to support up to 2,000 jobs in total.
Project Next Steps: Construction Kick-off
Construction activities for the Liverpool Bay CCS project are scheduled to begin this year, with operations expected to commence by 2028. As the backbone of the HyNet Cluster, the development represents not only a major engineering and infrastructure undertaking but also a model for how public and private sectors can collaborate to drive industrial decarbonisation.
Leadership comments on the Project
Claudio Descalzi, CEO of Eni, emphasised the significance of this agreement:
“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.”
He added that the project will place Eni at the forefront of a highly sustainable business, integral to the company’s broader decarbonisation strategy.
UK Secretary of State for Energy Security and Net Zero, Ed Miliband, commented:
“Today we keep our promise to launch a whole new clean energy industry for our country – carbon capture and storage – to deliver thousands of highly skilled jobs and revitalise our industrial communities.”
Related Project and News – Carbon Capture and Storage Projects
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- Aker Solutions Secures EPC Contract for Northern Lights Phase 2 CCS Project in Norway
- Mitsubishi-Worley JV secures FEED Contract for Padeswood CCS Project in the UK
- Technip Energies will be the FEED Contractor for the Viking CCS project
