Tony O'Reilly jnr's dCarbonX gets green light to develop gas storage facility in Irish Sea

The energy storage company said the facility 'is also being engineered for future conversion to hydrogen storage in the future'

dCarbonX is already involved in a project to redevelop the decommissioned gas reservoirs at the Kinsale Head gas field for large-scale gas storage. File photo

Tony O’Reilly jnr’s energy storage company dCarbonX, along with a leading European gas infrastructure operator, has been given the go-ahead to develop a new facility in the east Irish Sea which could boost the UK’s gas storage capacity by around 50%.

The facility is to be developed on the Bains gas site which is located near Barrow-in-Furness which is north of Blackpool. The gas site is 30km off the coast and 20 metres under water.

The company said it is “geologically suited for conversion into a depleted field storage facility and benefits from nearby pipeline infrastructure meaning it could be operational in under five years, subject to regulatory and investment approvals”.

dCarbonX is being backed in the project by Europe’s largest gas infrastructure operator Snam. 

The new facility is said to add an extra 1.4 billion cubic metres (bcm) of storage capacity to the UK’s system - which equates to six days of additional gas supply. 

Announcing the project, dCarbonX said declining UK North Sea gas production, reduction in coal usage, and fewer gas imports from Norway and Holland “means the UK desperately needs credible alternatives to secure Britain’s energy supply”.

“Crucially, it is also being engineered for future conversion to hydrogen storage in the future, helping align with the UK’s net zero targets without compromising near-term security now.” 

Chief executive of dCarbonX Mr O’Reilly said: “Bains is key strategic energy infrastructure. It’s deliverable, scalable, and vital to keeping the UK secure in the years ahead and throughout the energy transition and beyond.

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“The UK urgently needs more gas storage to reduce system risk and support the energy transition. Bains is a viable project that addresses a known shortfall, and a strategic opportunity.

“Without domestic gas storage, the UK is exposed to global gas market volatility, especially during winter. The question isn’t whether we need more storage, it’s whether we’re serious about building it.” 

dCarbonX is based in Dublin and London, and in November 2021 established a strategic energy transition alliance with the firm Snam which is now the company’s main shareholder with more than a 50% stake.

Since 2021, the dCarbonX has been working with the ESB on the proposed re-development of the decommissioned gas reservoirs at the Kinsale Head gas field for large-scale gas storage which would ultimately transition to green hydrogen storage.

In 2023, Bord Gáis Energy joined the project.