In our recent Insight covering decarbonization trends in Europe, we spotlighted the North Sea's role in furthering carbon storage projects. Here, we continue the conversation on European CCS (Carbon Capture and Storage) project development, focusing on the eastern Irish Sea region, where two major storage facilities are following a similar playbook of repurposing legacy offshore oil and gas assets and securing government funding to decarbonize onshore industries.
Irish Sea Carbon Storage and Infrastructure Development
At the forefront of CCS development in the eastern Irish Sea are the Liverpool Bay CCS (LBCCS) and Morecambe Net Zero (MNZ) projects. LBCCS is the CO2 transportation and storage network for the HyNet Industrial Cluster in England and Wales, while MNZ is the CO2 storage partner for the Peak Cluster.
Liverpool Bay CCS
Owner: Liverpool Bay CCS Ltd., a subsidiary of Eni SpA | Capacity: 5–10 Mtpa | Anticipated In-Service: 2028
After securing crucial funding for the project, Eni and the UK government reached final investment decision (FID) for LBCCS in August 2025. A new 36-inch pipeline is currently under construction, with a final 20-inch portion slated for construction from late 2026 to Summer 2027. This greenfield pipeline will connect to an existing pipeline to transport CO2 offshore for storage in the Hamilton, Hamilton North, and Lennox depleted gas fields.
Morecambe Net Zero
Owner: Spirit Energy Ltd., a joint venture between Centrica Plc and Stadtwerke München GmbH | Capacity: 3–25 Mtpa | Anticipated In-Service: 2030–2032
Still in the early stages of development, MNZ has secured an important anchor CO2 source by signing a Memorandum of Understanding (MOU) with the Peak Cluster and has entered the ‘Assess Phase’ of its carbon storage license. In early 2026, the Peak Cluster onshore pipeline infrastructure project entered a consultation phase. While the exact pipeline route is still under consideration, it is intended to transport CO2 from emitters in the region through the Wirral Peninsula for eventual storage in the North Morecambe and South Morecambe gas fields for sequestration.
CO2 Sources and Funding Schemes for Irish Sea Carbon Capture & Storage
Both the MNZ and LBCCS projects aim to decarbonize industry in England and Wales, but they differ in their strategies for the sectors from which they will source their CO₂. As the transportation and storage partner for the HyNet Industrial Cluster, LBCCS will primarily source its CO2 from the Power sector (mostly from the 3.7 Mtpa Connah’s Quay Low-Carbon Power project) and the Hydrogen+ sector, which includes facilities producing blue hydrogen or downstream products that incorporate blue hydrogen. Of the ten projects eligible to connect to the LBCCS CO2 transportation pipeline, five have been prioritized and are currently in negotiations with the UK’s Department for Energy Security and Net Zero (DESNZ) over funding and commercial terms. In May 2026, Eni also announced that additional financing has been secured from international lenders that will further bolster its CCS platform.
While the LBCCS project achieved FID through support from the DESNZ, the MNZ is being derisked through investment into the Peak Cluster by the UK's National Wealth Fund (NWF). The NWF has pledged nearly £30 million in equity investment, which will be used for FEED studies and to work towards FID for the cluster. Given that the Peak Cluster is a consortium of cement and lime producers, MNZ will initially have most of its CO2 sourced from the Cement and Lime sector.
Going forward
As gas fields in the eastern Irish Sea mature and production in them declines, operators like Eni and Spirit Energy are increasingly looking to carbon storage as a means of repurposing aging fields and leveraging existing infrastructure. Government funding plays a critical role in derisking first-mover projects and reflects the UK government's commitment to its legally binding emission-reduction targets. However, key hurdles, like project financing and environmental scrutiny of new pipeline infrastructure, remain. Therefore, how successfully the Peak Cluster navigates its consultation phase will be a defining factor in whether MNZ can move forward and ultimately meet its target in-service date. Meanwhile, LBCCS's 2028 in-service target will similarly face scrutiny. With two major anchor capture projects, Heidelberg Padeswood and Protos ERF, currently under construction, the storage project's timeline will depend heavily on those facilities progressing as planned.
For more on carbon capture and storage projects, check out FactSet's full suite of Energy coverage, which includes a CCS dataset published weekly.
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