TIDMIOG
RNS Number : 5999Y
IOG PLC
14 May 2021
14 May 2021
IOG plc
Collaboration Agreement with GeoNetZero CDT on
Southern North Sea carbon capture and storage research
IOG plc ("IOG" or "the Company"), (AIM: IOG.L), the UK gas
company targeting growth and high returns via an infrastructure-led
hub strategy, is pleased to announce that it has signed a
collaboration agreement with GeoNetZero CDT, Heriot-Watt
University's Centre for Doctoral Training, a leader in applying
geoscience to the challenges of progress towards a Net Zero
economy. Under this agreement, IOG will support research into
carbon capture and storage (CCS) and other renewable opportunities
across quads 48, 49, 52 and 53, the location of its asset portfolio
and broader Bacton catchment area in the UK Southern North Sea
(SNS).
As an environmentally low-impact domestic gas developer, IOG
supports the UK government's Net Zero target and the revised OGA
Strategy's promotion of CCS to help decarbonise the North Sea and
progress the energy transition. The Company also believes that the
infrastructure, knowledge and skills generated by over 50 years of
the SNS gas industry can play a constructive role in this
transition. Extending the economic life of the SNS basin in a
sustainable way is likely to involve long-term integration of the
established gas industry with wind, hydrogen and CCS solutions. In
particular, a successful blue hydrogen-CCS cluster in the Bacton
area will require consistent gas supply - IOG's core business - as
well as steam reformation facilities and secure offshore carbon
storage sites, all in reasonable proximity.
This important latter storage element is the focus of this
research, filling the gap in the geological analysis of the factors
that maintain seal integrity at subsurface sites . Drawing on an
extensive gas industry archive of seismic, well and core data, the
key focus will be on proving which fields and aquifers across the
Bacton catchment area are the most suitable carbon sinks,
particularly where existing infrastructure could provide
operational synergies.
Andrew Hockey, CEO of IOG, commented:
"We are very pleased to support GeoNetZero CDT's valuable
research into carbon storage across our operating area. This
collaboration demonstrates our support for the UK's Net Zero
commitment, the new OGA Strategy and the recently announced North
Sea Transition Deal.
IOG is committed to Bacton and its catchment area, where we have
established a long-term strategic position to underpin our growth
into a safe and sustainable UK gas producer. The area benefits from
substantial remaining gas resources, extensive transportation and
processing infrastructure and proximity to major markets.
In that context, rigorous technical analysis of nearby CCS
potential is a key element in validating the investment thesis for
blue hydrogen. This will inform the roadmap towards a decarbonised
energy hub at Bacton that could bring new economic opportunities
and extend the life of existing infrastructure."
Professor John Underhill, Head of GeoNetZero CDT, commented:
"I am delighted that IOG has elected to support research that
will identify, examine and test carbon storage sites and other
low-carbon renewable options in the Southern North Sea.
This support shows that industry recognises the relevance and
impact of our research at the GeoNetZero CDT and Heriot-Watt
University to decarbonise the North Sea, deliver the UK's
transition to Net Zero and maintain sustainable energy
supplies."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Enquiries:
IOG plc
Andrew Hockey (CEO)
Rupert Newall (CFO)
James Chance (Head of Corporate Finance & IR) +44 (0) 20 7036 1400
finnCap Ltd
Christopher Raggett
Simon Hicks +44 (0) 20 7220 0500
Peel Hunt LLP
Richard Crichton
David McKeown +44 (0) 20 7418 8900
Vigo Consulting
Patrick d'Ancona
Chris McMahon
Simon Woods +44 (0) 20 7390 0230
Heriot-Watt University / GeoNetZero CDT J.R.Underhill@hw.ac.uk
Prof. John Underhill
About IOG:
IOG owns and operates a 50% stake in substantial low risk, high
value gas reserves in the UK Southern North Sea. IOG's 50% Joint
Venture partner is CalEnergy Resources (UK) Limited (CER). The
Company's Core Project targets a gross 2P peak production rate of
140 MMcfe/d (c. 24,000 Boe/d) from gross 2P gas reserves of 302
Bcfe(1) and management estimated 2C gas Contingent Resources of 132
Bcfe, via an efficient hub strategy based on co-owned
infrastructure. In addition to its 2P reserves at Blythe, Elgood,
Southwark, Nailsworth and Elland and 2C contingent resources at
Goddard, it has management estimated gross 2C contingent resources
of 23 Bcfe at Abbeydale and unrisked mid-case prospective resources
of 66 Bcfe at Thornbridge, 31 Bcfe at Southsea, 31 Bcfe at Kelham,
27 Bcfe and 16 Bcfe in the two Goddard flank structures, and 21
Bcfe at Harvey. In December 2020 IOG also accepted a 50% operated
stake in Licence P2589, containing the Panther and Grafton gas
discoveries with management estimated gross mid-case contingent
resources of 46 Bcfe and 35 Bcfe respectively. In addition IOG
continues to pursue value accretive acquisitions to help generate
significant shareholder returns.
(1) ERC Equipoise Competent Persons Report: October 2017,
adjusted by Management to account for updated project timing and
compression
About GeoNetZero CDT:
GeoNetZero CDT is an academic-industry partnership comprising 12
universities and 8 companies that delivers doctoral training in
geoscience facing the low carbon energy transition and the
challenge to meet net zero emission targets. Its mission is to
provide the skills and training needed to secure a sustainable
low-carbon net zero future. The programme entails PhD research
alongside an accredited 20-week bespoke training programme of
modules delivered by experts. Established in 2014 after winning a
GBP3 million competitive funding award from the Natural Environment
Research Council (NERC), it has become recognised as a world leader
in research and training. Since its inception, the CDT programme
has been run by Professor John Underhill, who is based in the
Institute of GeoEnergy Engineering (IGE) at Heriot-Watt University.
An additional GBP17 million of funding has been secured from the UK
government's National Productivity Investment Fund (NPIF), industry
and UK Research & Innovation (UKRI), enabling over 150 PhD
students to be enrolled, over 60 of whom have graduated and gone on
into careers in industry and academia. GeoNetZero CDT was the only
entity named under Postgraduate Training in the UK Government's
North Sea Transition Deal in March 2021. Further information can be
found here: https://geo-net-zero.hw.ac.uk/
Glossary:
Carbon capture and storage (CCS): the process of capturing
carbon dioxide as an industrial or power generation by-product and
sequestering it (e.g. in geological formations, often depleted gas
reservoirs) to avoid release into the atmosphere.
Blue hydrogen: hydrogen produced from hydrocarbons, where the
carbon dioxide is subject to CCS.
Steam reformation: core part of the process of producing
hydrogen from methane, whereby methane molecules are split by the
presence of high-temperature steam and a catalyst at certain
pressures into hydrogen and carbon monoxide (CH + H O + heat = 3H +
CO). The latter is then reacted with water molecules to become
carbon dioxide, which can be subject to CCS as above, while also
forming more hydrogen in the process (CO + H O = CO + H ).
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