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03 Jun 2024

Synergia Energy has decided to offer Medway Hub CCS project for farm out

Synergia Energy has decided to offer Medway Hub CCS project for farm out

An announcement was made by Synergia Energy recently, who stated that due to a large expression of interest, the company will be putting up to half of its 50% interest in the CS019 Camelot carbon storage license, up for offer. This has been made official through the use of a farm out arrangement.

This arrangement is going very well so far, as Synergia Energy has been awarded carbon storage license for the Camelot reservoirs, under the NSTA 1st carbon storage licensing round. This has been provided, in order to help the company to sequester CO2 in depleted gas fields, as well as aquifers in the UKCS. On top of this preparation, Axis Well Technology has performed a pre-FEED study on the project. This study will confirm the technical viability of the project.

Synergia Energy is able to offer up half of its share in the CS019 license because it is this company and their partner Wintershall Dea who each hold a 50% interest in this license. This Camelot licence is located within the UK Southern North Sea, Synergia Energy is the designated operator of this licence and the aim for this site is that it will be able to store between 70 and 100 million tonnes of CO2.

The purpose of the Medway project is to provide the capture and transportation of CO2 emissions from coastal CCGT power stations. To complete this, the carbon dioxide is transported in liquid form by a marine tanker, which takes it to a Floating Injection, Storage and Offloading vessel (FISO). After this, the CO2 will then be depleted into gas fields which are found in the UKCS. Once this has been completed, the CO2 will be stored there permanently.

Once the share that is on offer has been claimed, the farm out will have to go through necessary regulatory approvals and it has been made clear that Synergia Energy will remain as the designated operator.

The Company said it, ‘believes achieving a farm out arrangement would materially lower capital commitments to the project whilst also potentially strengthening further the partnership operationally and technically.’

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