NSMP acquires interest in the Acorn Project
North Sea Midstream Partners ("NSMP") is pleased to announce its acquisition of a 10% interest in the Acorn Development Project (“Acorn”).
NSMP joins existing Acorn partners: Storegga Geotechnologies, Shell U.K ("Shell") and Harbour Energy ("Harbour") who each hold 30% interests, in a project addressing climate change and supporting the UK in delivering its net zero goals through industrial decarbonisation.
Acorn is focused on Carbon Capture and Storage (CCS) and Hydrogen development at St Fergus, in the northeast of Scotland. Based at NSMP's St Fergus gas terminal, Acorn CCS will help tackle climate change by using carbon capture technology existing gas pipelines and world class CO2 storage resources to manage emissions from industrial sites across the UK including those produced from NSMP’s St Fergus gas terminal and neighboring gas terminals. Acorn will also develop a hydrogen plant which will transform natural gas to hydrogen, a cleaner alternative for energy generation, and the CO2 generated from the transformation process will be captured and stored using the Acorn CCS infrastructure.
This acquisition is in line with NSMP’s strategy to embrace and play a lead role in the UK energy transition and our commitment to supporting the achievement of a net zero future. We are investing in our business to ensure we have the capability, resources, and skillsets to deliver this for our shippers and wider stakeholders.
NSMP CEO, Andy Heppel, commented that:
"We are delighted to be part of Acorn which aligns with our strategy and strengthens our commitment to the energy transition. Our St Fergus site is ideally positioned geographically to host new key Acorn infrastructure and we look forward to working with our Acorn partners as an investor, as well as operating facilities which are critical to the achievement of UK's net zero ambitions".
Nick Cooper, CEO Storegga, Lead Developer of the Acorn Project said:
"We are very pleased to welcome NSMP as a strategic partner in the Acorn Project. NSMP has a track record of owning critical midstream infrastructure across the North Sea.
"We need to be developing as many UK CCS projects as possible now to support rapid decarbonisation. The UK cannot reach its Net Zero targets without the CCS capacity of projects such as the Acorn Project, and it has to be a priority for accelerated development. We do not have the luxury of choice, the climate issue is urgent, there is no time to lose."
For further information
Notes to Editors
NSMP is a leading independent midstream business with large-scale gas infrastructure assets serving the North Sea. NSMP transports and processes natural gas from customers across the West of Shetlands, Northern North Sea, Norwegian North Sea, Central North Sea and Southern Gas Basin. NSMP provides essential services to over 35 fields owned by energy majors, utilities and independent producers, through a combined gas pipeline length of nearly 600km making NSMP's infrastructure the largest and most diversified gas transportation and processing system in the UK. NSMP is committed to using its assets to make a positive difference to both security of supply and the energy transition.
For more about NSMP, please visit: www.nsmp-limited.com
The Acorn CCS and Hydrogen Project provides critical backbone infrastructure to the Scottish Cluster. Storegga, Shell, and Harbour Energy are equal partners in the Acorn Project, each holding a 30% interest, alongside North Sea Midstream Partners which holds a 10% interest in the Project. Acorn is one of the most mature UK CCS and hydrogen projects and is positioned to be the most cost-effective and scalable CCS project in the UK. The project is currently in the detailed engineering and design phase of development and can be operational by the mid-2020's, providing a clear pathway for the UK to meet its net zero targets. Acorn is specifically designed to service multiple emitters around Scotland, the UK and Europe. As such, it can rapidly scale up to meet expected demand, with the ability to remove at least 20mtpa of CO2 emissions within the first decade of operations.