Carbon Catalyst Limited (CCL), based in the United Kingdom, has entered into an agreement with Summit Energy Evolution Limited (SEEL), a wholly-owned subsidiary of Japan's Sumitomo Corporation, to farm out a 10% working interest in the Orion carbon storage license. The Orion project encompasses two carbon storage licenses, CS017 and CS018, covering the decommissioned Amethyst and depleted West Sole gas fields operated by Perenco UK. The fields are strategically located near Humberside, the UK's largest industrial cluster, with direct pipeline connections to the Dimlington Gas Terminal.

The agreement, pending regulatory approval, marks SEEL's entry into the UK carbon storage sector and represents the first acquisition of carbon storage licenses in the UK by a Japanese company through a wholly-owned subsidiary. Upon completion, Perenco will retain an 80% interest in the asset operator, while CCL and SEEL will each hold a 10% interest. The transaction value remains undisclosed.

The Orion project aligns with the UK's decarbonization objectives, aiming to store carbon dioxide in the Amethyst and West Sole gas fields in the Southern North Sea. Following a comprehensive work program, including storage capacity assessment, leakage risk evaluation, facility design, and long-term monitoring plan development, the project will seek a commercialization permit from the UK government. A final investment decision is anticipated in 2029, with carbon dioxide injection commencing in 2031 at a rate of 1 million metric tons per year. Over a 40-year period, the capacity is set to expand to six million metric tons annually, contributing to the UK government's target of storing 20 million to 30 million metric tons annually by 2030. Orion aims to permanently store approximately 126 million metric tons of carbon dioxide.

Henry Morris, Executive Director of CCL, expressed satisfaction in welcoming SEEL to the Orion CCS project, highlighting SEEL's valuable experience in the UK oil and gas sector and its leadership in the Bacton Energy Hub. SEEL, as a UK-based subsidiary of Sumitomo Corporation, is committed to fostering partnerships for low carbon and net-zero initiatives, including carbon capture, utilization, and storage (CCUS) and hydrogen, both in the UK and globally.

Sumitomo, drawing on its extensive experience in the upstream oil and gas business since the 1970s, plans to leverage the Orion project to enhance its expertise in carbon dioxide transport and storage in the UK. The company aims to use this knowledge to expand its CCUS business to the Americas and the Asia-Pacific region.

The UK North Sea Transition Authority (NSTA) had previously awarded 21 licenses to 14 companies in a carbon storage licensing round, covering depleted oil and gas reservoirs and saline aquifers spanning around 12,000 square kilometers. These locations have the potential to store up to 30 million tons of carbon dioxide per year by 2030, equivalent to approximately 10% of UK annual emissions.