Stanlow Terminals Awarded Liverpool City Region Freeport Grant to Advance CO₂ Terminal Development into Pre-FEED Phase

Stanlow Terminals Ltd (STL) is proud to announce it has been awarded a £250,000 grant from the Liverpool City (LCR) Region Freeport Innovation Challenge Fund towards the development of a pre-FEED (Front-End Engineering Design) study for a pioneering CO₂ import terminal at Tranmere and Stanlow, within the Port of Liverpool.

The LCR Freeport Innovation Challenge Fund, delivered in partnership with Mersey Maritime, is intended to enable the LCR Freeport to reach strategic aims in relation to innovation with a focus on maritime decarbonisation including accelerating the development of sustainable port infrastructure.

This strategic investment marks a significant step forward in the region’s commitment to industrial decarbonisation and supports the UK’s broader net zero ambitions. The proposed terminal will play a critical role in enabling carbon capture, utilisation and storage (CCUS) infrastructure by facilitating the import and handling of captured CO₂ from domestic and international sources via Non-Pipeline Transfer (NPT) modes including water, road and rail. The UK Government, through the Department for Energy Security and Net Zero (DESNZ) CCUS Vision, has acknowledged the importance of NPT in expanding CCUS across the UK beyond pipeline clusters and creating opportunities for cross-border CO₂ storage, with a public consultation expected to be launched in early 2026.

NPT also delivers value for money by building resilience in the CCUS sector. Its modular nature enhances cost-effectiveness by providing flexibility to redirect CO₂ flows, reduce the cost of cross-chain protection, support merchant CO₂ stores, facilitate CO₂ storage export, and catalyse private investment for regional emitters not connected to pipelines.

STL’s existing terminal infrastructure combined with direct access to the North West’s vast CO₂ sequestration stores will make STL’s CO₂ NPT Import Terminal one of the UK’s and Europe’s leading CO₂ receiving facilities. The pre-FEED study will be complete by Q2 2026 and build upon the previous concept development work to further validate the technical and commercial feasibility, laying the groundwork to move into FEED for a full-scale terminal capable of supporting future carbon transport networks across the North West and beyond.

The initiative aligns with Stanlow Terminals’ broader strategy to transform its infrastructure in support of Essar Energy Transition and the region’s decarbonisation programme.

Michael Gaynon, Chief Executive Officer at Stanlow Terminals Ltd, commented:

“We are pleased to receive this strategic support from the Liverpool City Region Combined Authority Freeport. The funding will enable us to accelerate the development of a CO₂ import terminal at Tranmere and Stanlow, which is a critical enabler for regional decarbonisation and the UK’s broader net zero ambitions. Stanlow Terminal’s location and infrastructure make it ideally suited to become a central hub for carbon handling and storage, and this grant represents a key milestone in advancing that vision.”

Cllr Liam Robinson, Liverpool City Region Cabinet Member for Innovation, said:

“Innovation is at the heart of the Liverpool City Region’s future success. Projects such as Stanlow Terminal’s pioneering CO2 terminal show how our Freeport can be a launchpad for pioneering technologies – from clean shipping solutions to carbon capture and digital logistics. By backing local innovators, we’re not only helping them scale their ideas but also positioning our region as a leader in the industries of tomorrow.”

Ruth Wood, Chief Executive Officer at Mersey Maritime, commented:

“Mersey Maritime is delighted to see Stanlow Terminals’ success in achieving this grant support for their innovative study focused on their vision for a CO₂ import terminal at Tranmere and Stanlow. The North West is playing a leading role in the delivery of pioneering carbon capture and storage infrastructure. This project has the potential to make a major contribution to this wider effort to deliver cleaner and greener energy. We look forward to seeing it develop going forward and the positive outcomes that are anticipated.”

Olivia Powis, CEO at The Carbon Capture and Storage Association (CCSA), commented:

“Stanlow Terminals’ progress on a dedicated CO₂ NPT import terminal is exactly the type of infrastructure the UK needs to unlock a truly nationwide CCUS industry. Non-pipeline transfer will be essential for connecting dispersed emitters, enabling cross-border CO₂ and building resilience across the whole CCUS value chain. This investment from the Liverpool City Region Freeport is an important step in turning that vision into reality, supporting both regional decarbonisation and the UK’s long-term net zero goals.”

Phillip Hall, Port Director Mersey at Peel Ports Liverpool, commented:

“Freeport investment is essential to accelerating decarbonisation across the Liverpool City Region, and in helping us to position the region as a leader in the country’s transition to a net-zero economy. Stanlow Terminals is a highly valued partner of the Port of Liverpool and so this is a very welcome milestone in its progress in CO₂ capture, import and reduction.”

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