Northern Endurance Partnership wins Ofgem approval to advance Humber CCS development

The Northern Endurance Partnership (NEP) can now advance its vision to decarbonise the Humber region, delivering major economic benefits and skilled employment opportunities, following Ofgem’s approval of its Tranche 2 Business Case.

The approval will unlock a £98.8 million investment enabling NEP to develop its Humber Carbon Capture Pipeline (HCCP), the critical carbon transportation and storage infrastructure needed for decarbonisation.

Rich Denny

The money will equip NEP to carry out important preparation and planning work now, listening to local people’s feedback and adapting plans where possible, so that the project is less likely to face delays, cost overruns or technical problems later.

By doing this upfront work, NEP can reduce uncertainty and “de-risk” the project as part of our progress towards a Final Investment Decision (FID).

This work includes statutory consultation and submission of a Development Consent Order (DCO), an innovative Horizontal Directional Drilling (HDD) trial beneath the Humber estuary and collecting essential survey data. It also includes preparations for Front-End Engineering Design (FEED) under Tranche 3, approval for which will be sought under a separate business case.

Existing hydrogen infrastructure can be modified for CCS use.

NEP and The Crown Estate have now signed a lease paving the way for the UK’s first and largest commercial-scale CO₂ transportation and storage asset.

The landmark agreement establishes the UK’s first commercial-scale lease of the seabed for permanent offshore CO₂ storage and associated pipeline infrastructure, providing a template for future carbon capture and storage (CCS) projects around the UK’s coastline.

The lease signing is another critical milestone towards installing the infrastructure for the Endurance carbon store – a saline aquifer located approximately 140 km offshore in the southern North Sea which, together with nearby stores, provides NEP with access to up to 1 billion tonnes of CO₂ storage capacity.

Rich Denny, Managing Director, Northern Endurance Partnership, said: “We’re well on our way to starting construction of the UK’s first offshore carbon transport and storage infrastructure – helping drive the journey to net zero and boost economic growth. Thank you to The Crown Estate for their support in delivering this critical piece of national infrastructure. We are moving ahead with essential development activities, including the DCO submission and our pioneering HDD trial, setting us firmly on the path to FID. The Humber is the UK’s largest source of industrial emissions, so decarbonising it is critical – not only to achieving national net zero goals but also to unlocking major economic benefits and skilled employment opportunities across the region.”

Denise Moylan, CCS & Hydrogen Director at The Crown Estate, added: “This is the first carbon capture and storage project to progress to this stage and signifies the clear potential of this exciting sector. By storing carbon emissions which would otherwise have entered our atmosphere, we are supporting hard to abate industries to decarbonise whilst also driving economic growth in the north east of England. We’ve worked closely with the team at Northern Endurance Partnership and are very pleased the project has entered into lease, and look forward to their continued success as the project moves into its construction phase.”

In December 2024, NEP reached financial close on the first phase of Teesside’s onshore infrastructure – serving NZT Power and future Teesside-based projects – and on the 145‑kilometre offshore pipeline to the Endurance Carbon Store. NEP was simultaneously awarded the UK’s first-ever carbon storage permit by the North Sea Transition Authority (NSTA). With all necessary consents secured, construction is underway, and start-up is expected in 2028.

The submission to Ofgem was made under NEP’s CCUS Economic Licence and ensures the project continues to be transparent and align with the UK’s wider decarbonisation objectives. Tranche 2 activities will also inform the scope, cost and schedule for Tranche 3, which will focus on FEED and EPC contracting ahead of the NEP Expansion FID.

The investment was supported by DESNZ as part of the variation process under the economic licence, reflecting the continued government support for CCUS set out in this year’s spending review and signalling confidence to those considering a future connection in the region.

Northern Endurance Partnership; a catalyst for decarbonisation

The HCCP would transport CO2 from carbon capture projects in the Humber region to secure offshore storage under the North Sea. The pipeline would be built between the Drax area in North Yorkshire and the coast north of Easington in the East Riding of Yorkshire. Parts of the pipeline would also run through North Lincolnshire and North East Lincolnshire.

The pipeline itself would be underground but would also require a number of above ground installations along with a pump  facility. The carbon capture projects will be selected by DESNZ through the East Coast Cluster expansion process.