Spirit Energy granted carbon storage licence by NSTA in UK for North and South Morecambe

LONDON (ICIS)–UK-Dutch company Spirit Energy has been granted a carbon-storage licence by the North Sea Transition Authority (NSTA) which will allow it to repurpose the North and South Morecambe natural gas fields, Spirit Energy said in a press release 18 May.

The Morecambe Net Zero (MNZ) Cluster in the UK has the potential to store up to a gigaton of carbon dioxide (CO2), Spirit Energy added.

The MNZ Cluster is due initially to be able to store 5m tonnes/year of CO2 before being scaled up to a capacity of 25m tonnes/year. It will be able to accept CO2 transported by pipeline, ship, and rail.

Spirit Energy submitted a qualifying expression of interest for the MNZ Cluster to be considered as part of the UK government’s Track 2 CCUS (carbon capture, usage and storage) Cluster Sequencing process in April.

The UK government has shown support to low-carbon hydrogen that is produced by a fossil fuel with CCUS infrastructure linked to the production asset. But a 95% CO2 capture rate is expected and a threshold of greenhouse gas emissions intensity of 20gCO2e/megajoule at low heating value (MJLHV) of hydrogen produced.