National Grid Ventures is stepping away from carbon capture and storage, having been a key partner in pan-Humber plans.
The organisation is looking to sell its interest in the huge decarbonisation project, having been one of the original parties alongside Drax and Equinor. The energy majors are behind two projects that bookend the ambitious dual pipeline network for emission removal and hydrogen supply, with NGV working up the connecting infrastructure to carry an estimated 17 million tonnes annually.
BP could take over, as the lead player in the wider Northern Endurance Partnership project, which spans the Tees and Humber as the East Coast Cluster’s transport and storage solution. NGV has already exited that project.
Read more: Humber misses out on carbon capture and storage lead role after Track One no-show
It comes as Drax has now paused further investment in its BECCS plans as it awaits outcomes of discussions with government after it wasn’t selected as a Tier One forerunner, with only the Tees element of the cluster progressing following March’s announcement.
A spokesperson for National Grid said: “National Grid Ventures has already transitioned out of the Northern Endurance Partnership, the offshore aspects of the East Coast Cluster.
“We’re in discussion to transfer our interest in the Humber onshore systems to NEP. There is a natural synergy with the overall NEP transportation and storage system, which will serve carbon capture projects across Teesside and the Humber.
“NGV’s decision to transfer our interests to NEP is part of National Grid’s broader strategic focus on the company’s existing UK portfolio, in which they are investing more than £15 billion 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.”
Shell has also left NEP, with BP and Equnor acquiring the equity holdings from it and NGV there. TotalEnergies remains, though has not increased its stake. Shell said it was focusing efforts on its Acorn project in Scotland.
Andy Lane, managing director of 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."
BP has recently bought into the Viking CCS project on the Humber. That serves the Immingham refining and power cluster, with shipping reception facilities being developed for carbon with ABP.
NGV went through the consultation phase on the selected route for what is known as Humber Low Carbon Pipelines late last year, ahead of an anticipated application for a development consent order this summer. Described as a staggering feat of engineering, it would stretch from Drax to Easington, sweeping below Goole, Scunthorpe and Brigg before crossing the Humber from Killingholme to Saltend and heading out to the coast. 2026 had been eyed as an early construction completion date.
Richard Gwilliam, chair of the Humber Energy Board, said: “It is a development we have been tracking closely. National Grid has been very active in CCS for a very long time, however, I don’t think we should read too much into this. The industry was aware National Grid was undergoing a review last year and members of the Zero Carbon Humber consortium had been notified as early as January that this was going to happen.
“We take a great deal of reassurance over the ongoing dialogue with BP for it to take over the assets. BP is very active player in CCS, not just in the UK but globally. It is great there is a business with ambition to develop at scale.”
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