Synergia Energy (AIM: SYN) has begun the farm-out process concerning its Medway Hub Camelot carbon capture and storage (CCS) project in the UK.
Synergia and its partner, Wintershall Dea, each hold a 50% interest in the CS019 Camelot carbon storage licence, with Synergia as designated operator.
The Camelot licence, located in the UK Southern North Sea, is currently projected to be able to store between 70 and 100 million tonnes of CO2.
Following expressions of interest from a number of parties, Synergia has decided to offer up to half of its 50% interest in the CS019 licence under a farm-out arrangement, subject to necessary regulatory approvals, with Synergia remaining as designated operator.
The Medway Hub Camelot CCS project will be based on the Isle of Grain near Rochester in Kent to provide a merchant solution for CO2 emitters. It will use National Grid’s LNG facilities to liquify CO2 before it is transported by tankers to a floating injection, storage and offloading (FISO) vessel.
Synergia previously floated plans to drill an appraisal well on the Camelot field in the next 18-24 months. The well aims to verify geological studies and assess the reservoir’s Bunter sandstone formation.
Afte that, Synergia aims to start planning and tendering for a drilling rig and associated services later this year.
Synergia and Wintershall Dea received a carbon storage licence from the NSTA for Camelot in August 2023 as part of the UK’s first carbon storage licensing round.
Recommended for you
