Oilex Limited has provided the following update on its proposed Medway Hub Carbon
Capture and Storage (CCS) project in the UK.
The CCS project provides for the capture and transportation of CO2 emissions from coastal CCGT power stations in
liquid form by marine tanker to a Floating Injection, Storage and Offloading vessel (FISO) from which the CO2 would be
injected into the Esmond and Forbes depleted gas fields, which are situated in the UKCS, for permanent sequestration.
As previously announced, the Company has applied for a CCS license via the Oil and Gas Authority’s nomination process
to store CO2 in these two depleted gas fields. The Company is hoping to be granted the license in the coming months.
A pre-FEED* study has been completed by Axis Well Technology, which confirms the technical viability of the project as
well as providing scoping economics.
The CCS project is contemplated to be a merchant scheme whereby emitters would pay for the capture, transportation
and storage of CO2 from CCGT power station emissions under long-term contract, instead of incurring the cost of carbon
allowances.
The CCS project is subject to contracts with carbon emitters, regulatory approvals and funding. In addition, a full FEED*
study will be required to further refine all of the technical aspects of the project and the project costings and economics
in order to prepare for a final investment decision.
