Takeaways

• UK north-west carbon capture plans advance as Stanlow Terminals, Spirit Energy, and Progressive Energy sign a new collaboration agreement.
• The partners will explore a CO₂ shipping import terminal at the Port of Liverpool and storage at the Morecambe Net Zero site.
• The project supports wider industrial decarbonization goals but comes amid concerns about CCS viability and policy risks.

Three major energy players have joined forces to accelerate UK north-west carbon capture efforts, marking a fresh step in the region’s push toward industrial decarbonization.

Stanlow Terminals, a subsidiary of Essar Energy Transition, has signed a collaboration agreement with Spirit Energy and Progressive Energy to explore the feasibility of an integrated carbon capture and storage (CCS) and shipping facility. The project will assess plans for a CO₂ shipping import terminal at Stanlow Terminals’ Tranmere site within the Port of Liverpool, as well as at the Stanlow Manufacturing Complex.

The partners will evaluate the joint business case and development planning feasibility for transporting captured carbon dioxide to Spirit Energy’s Morecambe Net Zero carbon store in the East Irish Sea. The proposal would enable CO₂ volumes received via shipping terminals to be moved onward for permanent storage beneath the seabed.

The collaboration forms part of a broader vision to transform the Stanlow manufacturing complex into a decarbonized energy hub. The aim is to support long-term sustainable jobs, industrial innovation, and regional economic growth.

Stanlow Terminals is already involved in the HyNet North West project, one of the UK’s flagship carbon capture and storage initiatives. Under that scheme, CO₂ emissions from the Stanlow refinery, including its Fluid Catalytic Cracking unit, are set to be captured and stored through the Liverpool Bay project.

Read More: Asia’s Heavy Industry Unites for Cross-Border Carbon Capture Drive

The new agreement further strengthens Essar Energy Transition’s $3 billion investment in its broader decarbonization program.

Mike Gaynon, CEO of Stanlow Terminals, said the partnership brings together “the right partners with the right expertise” to unlock new opportunities for CO₂ movement and storage. He added that the work could reinforce the region’s industrial base while driving forward Stanlow’s decarbonization ambitions.

Spirit Energy also highlighted the importance of collaboration. Matt Browell-Hook, the company’s Energy Transition, Decommissioning and Projects Director, said carbon capture and storage is not the sole solution to achieving net zero 2050, but remains a key enabler for decarbonizing heavy industry in the UK.

He noted that the partnership could create a route to decarbonization for emitters across the country via the Stanlow site. According to Browell-Hook, projects like this are essential to protect existing jobs while supporting economic growth.

Chris Manson Whitton, CEO of Progressive Energy, said the company is focused on delivering practical and technically robust solutions for capturing, transporting, and storing CO₂ at scale. He added that building the right infrastructure would help safeguard skilled employment and strengthen the UK’s position in low-carbon energy innovation.

However, the renewed push for carbon capture comes at a time of heightened scrutiny. A recent report warned that hydrogen and CCS technologies remain heavily subsidy-dependent and vulnerable to policy uncertainty. It pointed to delays and cancellations in UK CCS and hydrogen schemes, as well as missed offshore wind auction targets, arguing that there is currently no credible replacement for the scale of jobs, tax revenues, and energy security provided by hydrocarbons.

Also Read: Carbon Capture Market Forecast: Policy Shifts Fuel Global Growth

Despite these concerns, the industry trio’s latest move signals continued confidence in scaling up carbon capture and storage, positioning the north-west as a potential leader in the UK’s low-carbon transition.

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Source: gasworld