International savings and investments business M&G plc announced today two new investments in early stage carbon capture and storage companies, Storegga Geotechnologies and Summit Carbon Solutions, made through the £143 billion Prudential With-Profits Fund.
Storegga develops infrastructure across the carbon ecosystem, establishing capture, transport and storage solutions for carbon dioxide. The company is the lead developer of the Acorn project in North East Scotland, one of the UK’s leading carbon capture and storage and hydrogen projects, in partnership with Shell and Harbour Energy. Acorn makes use of existing offshore oil and gas pipelines for transport carbon for secure geological storage under the sea bed. According to M&G, the project could potentially store more than 20 million tonnes of CO2 emissions per year within its first decade of operation.
Summit connects industrial facilities via strategic infrastructure to safely and permanently store carbon dioxide. The company aims to lower the carbon footprint of ethanol refineries and other industrial emitters through installation of carbon capture equipment at industrial facilities, developing a pipeline network to aggregate and transport CO2 to sequestration sites, and drilling and operating injection wells. According to M&G, the company’s network has the potential to capture and store more than 10 million tons of CO2 annually, once fully developed.
M&G stated that the new investments align with its ambition to achieve net zero carbon emissions across its entire investment portfolio by 2050 at latest.
Jack Daniels, Chief Investment Officer, M&G plc, said:
“Carbon capture and storage is emerging as a responsible and pragmatic solution in the effort to arrest global warming. As sustainable investors with patient capital, we are able to support these projects through their development phases until they become fully operational. When complete, these projects are likely to play a significant role in lowering the carbon footprint of industrial companies, as decarbonising their activities is expected to take longer, which is an important tool in the mix for tackling climate change.”