Italian energy company Eni and the UK Government have reached financial close on the Liverpool Bay Carbon Capture and Storage (CCS) project, paving the way for full-scale construction to begin in 2025. The project, which lies at the heart of the HyNet industrial decarbonisation cluster in North West England and North Wales, is a key component of the UK’s long-term strategy to cut industrial emissions and establish a competitive low-carbon economy.
The agreement marks a significant milestone in the UK’s ambitions to become a global hub for carbon capture. The Liverpool Bay CCS network will serve as the backbone of the HyNet Cluster, one of the world’s most advanced carbon capture and storage systems. It aims to permanently store carbon dioxide (CO₂) emissions from heavy industries, including cement manufacturing, waste-to-energy plants and hydrogen production facilities.
UK Energy Security and Net Zero Secretary Ed Miliband hailed the announcement as the start of a new industrial chapter for the country. “Today we keep our promise to launch a whole new clean energy industry for our country – carbon capture and storage – to deliver thousands of highly skilled jobs and revitalise our industrial communities,” he said.
The government has committed £21.7 billion over 25 years to support the UK’s first two CCS clusters—HyNet and the East Coast Cluster—representing the largest public investment in CCS to date. The Liverpool Bay project alone is expected to generate up to £2 billion in supply chain contracts, many of which will benefit businesses in the North of England. Around 2,000 jobs are forecast to be created during the construction phase.
Eni, which is leading the CO₂ transport and storage component of HyNet, will repurpose existing offshore platforms and 149 kilometres of pipelines in Liverpool Bay. A further 35 kilometres of new pipeline infrastructure will be constructed to connect major industrial emitters across the region. The captured CO₂ will be injected into depleted gas fields beneath the seabed, with an initial storage capacity of 4.5 million tonnes of CO₂ per year. This could increase to 10 million tonnes annually by the 2030s.
Eni’s Chief Executive Claudio Descalzi described the agreement as a key step toward scaling up CCS internationally. “This strategic agreement with the UK Government paves the way for the industrial-scale development of CCS. Eni confirms its position at the forefront in the creation of this new, highly sustainable business linked to the energy transition,” he said.
The Liverpool Bay project forms part of a broader push by Eni to establish itself as a global carbon storage leader. The company is developing a total gross CO₂ storage capacity of 3 billion tonnes worldwide and is in the process of creating a dedicated CCS business unit. Reports suggest Eni is also in talks with potential investors regarding minority stakes in the venture.
The UK Continental Shelf is estimated to have the capacity to store up to 78 billion tonnes of CO₂, according to the North Sea Transition Authority (NSTA), positioning the country as a potential global centre of excellence for carbon storage. The government recently awarded 21 carbon storage licences in the North Sea as part of its drive to expand the sector.
Construction of the Liverpool Bay CCS infrastructure is scheduled to begin in 2025, with operations due to commence by 2028—timed to support HyNet’s industrial partners in meeting their emissions reduction targets.
For more on the UK’s CCS ambitions, see the UK Government’s official page on the HyNet North West project and Eni’s dedicated CCS strategy overview.
