Severnside Carbon and Exolum, Europe’s leading energy logistics company, have signed a new agreement under which Exolum will create a new subsidiary, ‘Exolum 7CO₂’, to invest and lead the next phase of development of a major new carbon dioxide (CO₂) storage terminal at Avonmouth.
Técnicas Reunidas, the leading Spanish engineering firm, will also act as a partner.
To date, only industry in four UK clusters in northern England and Scotland has had the opportunity to access UK government‑backed carbon capture, transport, and storage infrastructure, which is seen as key to safeguarding industry through the energy transition. Around half of UK industrial emissions fall outside of these areas, with industry in South Wales alone responsible for 5% of the UK’s carbon emissions.
The terminal will be the UK’s first large-scale CO₂ hub designed for flexible, modular transport by rail and ship, helping accelerate deployment. Exolum 7CO₂ expects operations to start from 2031.
Once operational, the terminal could handle up to six million tonnes of CO₂ a year from existing emitters – equivalent to the south-west of England’s total annual emissions – helping safeguard industrial competitiveness as decarbonisation requirements tighten.
Severnside Carbon will continue working with Exolum 7CO₂ as advisers, ensuring continuity and consistency of approach to the terminal’s development, and maintaining the close relationship with public and private stakeholders.
Técnicas Reunidas, underpinned by its existing collaboration agreement with Exolum, will act as Engineering Partner for the carbon hub and as development partner for related projects, contributing its extensive experience in delivering large-scale energy infrastructure to ensure a robust and efficient design of the project, as part of track, its Low Carbon Business Unit.
Paul Davies, co-founder of Severnside Carbon, noted: “Exolum’s investment in the 7CO₂ terminal is a significant step forward, giving regional emitters and wider stakeholders confidence to invest in carbon capture and related industries. Exolum brings the operational excellence, specialist capability, and financial strength to reduce delivery risk and take the terminal from development into operation.”
Nacho Casajús, Senior Vice President at Exolum Global Energy Logistics, said: “The energy transition needs resilient, future-ready infrastructure that gives industry access to the carbon capture ecosystem.”
Joaquín Pérez de Ayala, Head of track, the Low Carbon Business Unit of Técnicas Reunidas, said: “Técnicas Reunidas, through track, is doubling down its bet on decarbonisation. We are very proud to be supporting Severnside Carbon and Exolum in this project.”