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Wintershall Dea AG has acquired a 10 percent stake in the Poseidon carbon capture and storage (CCS) in the United Kingdom (UK) from Carbon Catalyst Ltd, which is its second CCS project in the country.
Perenco UK and Carbon Catalyst won the license for the Poseidon project from the North Sea Transition Authority’s (NSTA) first competitive carbon storage round in August. Wintershall Dea now joins as a non-operating stakeholder, the Germany-based company said in a news release Tuesday, with Perenco being the designated operator for the project.
The Poseidon project is among the largest carbon dioxide transportation and storage projects in the UK, according to the release. It is scheduled to be operational by 2029, with a total annual storage capacity of up to 40 million metric tons in its full development stage. The project aims to have permanent geological storage of approximately one billion tonnes of carbon dioxide.
The project encompasses the Leman gas fields, one of the largest geological structures in the Southern North Sea sector of the UK Continental Shelf. Leman offers a mixture of depleted gas reservoirs and saline aquifers in which carbon dioxide can be permanently stored.
Poseidon is expected to connect a wide range of carbon dioxide emitters across the East and Southeast of England and has the potential to “significantly decarbonize the area”, Wintershall Dea said. The carbon dioxide will be transported via the Perenco-operated Bacton Gas Terminal to the offshore Poseidon storage site.
“We are proud to expand our presence in the country and contribute to the UK’s efforts in achieving a net-zero future”, Wintershall Dea Chief Technology Officer and Executive Board Member Hugo Dijkgraaf said. “Through our involvement in this project, we are further growing our expertise in the CCS field and reconfirming our efforts to decarbonize European industries”.
“As an expert E&P [exploration and production] company with over 60 years of experience in the North Sea and our growing CCS expertise from projects in Norway and Denmark, Wintershall Dea can contribute valuable subsurface and technical knowledge to this outstanding project”, Wintershall Dea Country Lead UK for Carbon Management and Hydrogen Matthias Pfeiffer said. “We are looking forward to working together with our partners Perenco and Carbon Catalyst in order to mature this project in a safe and most efficient way”.
Wintershall Dea said it now has stakes in five offshore CCS licenses in three North Sea countries. With the BlueHyNow and CO2nnectNow projects, the company also contributes to Energy Hub Wilhelmshaven on the German North Sea coast, which is aimed at producing hydrogen with electricity from nearby offshore wind farms or from natural gas, as well as becoming a key location for the import of hydrogen derivatives such as ammonia.
Wintershall Dea, with headquarters in Kassel and Hamburg, explores for and produces gas and oil in 11 countries worldwide. The company has a global upstream portfolio and is also active in the midstream business, as well as developing carbon management and low carbon hydrogen projects. It was formed by the merger of Wintershall Holding GmbH and DEA Deutsche Erdoel AG in 2019.
The company in October reported producing first gas at the ED2-X well at the East Damanhur block in the onshore Nile Delta in Egypt. The ED-2X ST1 well is located around 1.9 miles (three kilometers) from the Disouq field, where Wintershall Dea and Egyptian Gas Holding Company (EGAS) are producing natural gas in the DISOUCO joint venture. The well, which delivers production of approximately 10 million standard cubic feet per day, was tied back to the Disouq facilities within two months of its discovery in January.
Wintershall Dea operates the ED-2X ST1 well and holds a 40 percent interest, while Cheiron Energy and INA hold 40 percent and 20 percent interest, respectively. The license holders started exploring East Damanhur in 2021.
To contact the author, email rocky.teodoro@rigzone.com
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