The funds have been raised from Singapore’s sovereign wealth fund GIC and Japan's Mitsui
Acorn project is scheduled to become operational in the mid-2020s. (Credit: catazul from Pixabay)
Storegga has received new investment from Singapore’s sovereign wealth fund GIC and Japanese trading and investment company Mitsui for its Acorn carbon capture and storage (CCS) and hydrogen project in the UK.
The company has also secured further investment from its cornerstone investor Macquarie, an Australia-based investment banking company.
Storegga intends to use the proceeds to progress its funding of some of the wider aspects of the Acorn project, plans for its UK-based direct air capture (DAC) facility, and support its ongoing business development activities.
Storegga CEO Nick Cooper said: “We are delighted that GIC and Mitsui are joining Macquarie as investors in Storegga. We welcome their vision and commitment to help deliver a net zero future.
“The UK is emerging as a world-leader in CCS and its associated low carbon technologies; today’s investment by these partners strengthens our ability to build a world class CCS project and help the UK to pioneer this rapidly growing sector.
“As a new, independent, company in this sector we bring a sharp commercial focus and ‘can do’ attitude to our CO2 reduction and removal businesses. Our purpose is to drive the transition to a low carbon, and then no carbon economy.”
Storegga said that it aims to lead the UK’s world CCS and decarbonisation goals, and help create the world’s leading skills base for export and application across the globe.
Through its wholly owned subsidiary Pale Blue Dot, the company is the lead developer of the Acorn project, located at St. Fergus, North East Scotland.
The CCS and hydrogen project is considered a European Project of Common Interest, providing essential infrastructure to help both the UK and Europe meet net zero targets.
The project is scheduled to become operational in the mid-2020s and has the potential to store at least half of the UK Government’s target of 10Mt/yr of CO2 storage by 2030.
In addition to the new investment, Storegga and Mitsui have reached a non-exclusive agreement to initiate and progress further CCS opportunities in Europe and in the Asia-Pacific region.
Mitsui & Co energy business unit chief operating officer Masaharu Okubo said: “We will work closely with Storegga’s management team and help accelerate its vision and commitment by using our extensive knowledge of the energy sector and strong global networks.
“Mitsui believes providing low-carbon solutions to hard-to-abate industries such as energy will be critical in achieving net-zero carbon targets. Through development of CCS projects globally, Mitsui will help create an eco-friendly society.”