Shell is one of two firms to pull out of Humber green scheme
NATIONAL Grid and Shell have pulled out of plans to develop new pipelines for carbon capture and storage in The Humber, central to regional efforts to reach net zero.
Both firms have pulled out of the The Northern Endurance Partnership (NEP), which plans to develop CO2 transportation and storage infrastructure around the East Coast.
They had been due to be part of plans to build around 75 miles of new pipelines starting from Drax, in North Yorkshire, and heading to factories and power plants in North Lincolnshire, before the emissions were ultimately piped out to sea to be stored underwater.
The region recently missed out on immediate Government support for national carbon capture projects.
National Grid Ventures (NGV) and Shell have relinquished their equity holdings in the NEP.
Existing NEP partners bp and Equinor have acquired the equity holdings of NGV and Shell. The Northern Endurance Partnership now comprises bp, Equinor and Total Energies.
Andy Lane, MD Northern Endurance Partnership, said: “We thank
National Grid Ventures and Shell for their work to date on the Northern Endurance Partnership.
“NEP partners are in the advanced stages of commercial discussions to acquire National Grid Ventures holdings in the Humber onshore pipeline system.
"Upon completion of the discussions, we will work together on a seamless transfer of operatorship on behalf of the NEP”.
Shell says it has withdrawn from the NEP to focus its efforts on the Acorn Project, of which it is a technical developer and where it can have the “most impact” in decarbonising the UK. National Grid Ventures is also in discussions with NEP partners on the sale of the Humber onshore pipeline proposals.
"Subject to completion of the discussions, NGV will transition the Humber onshore CO2 system assets to the NEP which will continue to serve carbon capture projects across Teesside and the Humber.
bp, the operator of the NEP Teesside onshore CO2 transportation system and the NEP offshore CO2 transportation and storage system would assume sole operatorship of the full, end-to-end NEP CO2 system. A National Grid spokesperson said: “NGV has already transitioned out of the Northern Endurance Partnership, the offshore aspects of the East Coast Cluster.
“The decision is part of National Grid’s broader strategic focus on the company’s existing UK portfolio, in which they are investing more than £15bn by 2026 to integrate renewables and deliver net zero.
"We are committed to managing a smooth transition in the best interests of the East Coast Cluster and our partners and stakeholders."