Yahoo Finance BP to Develop U.K. Viking CCS Project With Harbour Energy
BP plc BP and Harbour Energy entered into an agreement to develop the Viking carbon capture and storage (“CCS”) project at Humber, England.
As part of the deal, BP will acquire a 40% non-operated interest in the Viking CCS project. Harbour Energy will continue to operate with a 60% interest.
The imperative to reduce the consequences of climate change becomes more important with each passing day. Hence, initiatives to remove carbon dioxide from the atmosphere and put it in underground storage have become more popular across Europe over the past few years.
The project is designed to transport carbon dioxide through a newly-formed pipeline connecting Immingham to Theddlethorpe, storing it in secure offshore storage sites. Viking CCS has the ability to address one-third of the British government’s target to capture and store 30 million tons per annum of carbon dioxide by the end of the decade.
The project could transform the region by unlocking up to £7 billion of investment in the carbon-dioxide value chain within the next decade. A final investment decision for the project is expected in 2024. It could be up and running as early as 2027 and store up to 10 million tons per annum of carbon dioxide by 2030.
BP and Harbour Energy share an interest in the Lincolnshire Offshore Gas Gathering System pipeline, which is planned to be modified as part of the project. This provides an option to connect customers to the depleted Viking gas fields.
BP’s entry into Viking CCS shows its commitment to supporting Britain achieve its net-zero goals. Viking CCS could help create employment and enable supply chains that support the growth of CCS in the U.K. The project is being developed as the U.K. government seeks to accelerate its push for net-zero emissions.
Price Performance
Shares of BP have outperformed the industry in the past six months. The stock has gained 27.9% compared with the industry’s 11% growth.
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Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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