Oilex expects UK CCS licence in "coming months"
SUMMARY
The company is developing the Medway Hub CCS project in the UK.
By Shardul SharmaPOSTED IN:
Australia’s Oilex expects to get a carbon capture and storage licence in the UK in the coming months, it said on February 28.
The company is developing the Medway Hub carbon capture and storage (CCS) project in the UK, which will handle CO2 emitted from coastal gas-fired power plants and transport it in liquid form by tanker to a floating injection, storage and offloading vessel. There it will be injected into the depleted Esmond and Forbes gas fields off the UK coast for permanent sequestration.
Oilex has applied for a CCS licence via the Oil and Gas Authority’s nomination process.
“The company is hoping to be granted the license in the coming months,” Oilex said. “A pre-FEED study has been completed by Axis Well Technology, which confirms the technical viability of the project as well as providing scoping economics.”
The CCS project is contemplated to be a merchant scheme whereby emitters would pay for the capture, transportation and storage of CO2 from CCGT power station emissions under a long-term contract, instead of incurring the cost of carbon allowances.
