VH Global Energy carbon capture project reaches milestone

(Sharecast News) - VH Global Energy Infrastructure announced a significant milestone for its 10MW UK flexible power project with carbon capture and re-use on Friday, with the successful commissioning of its first carbon dioxide stream. The London-listed company said it was expecting full commissioning of the integrated plant by the end of the first quarter of 2025.

It said the project was designed to provide dependable power in the UK as the grid incorporated more intermittent renewable energy sources.

The gas-fired facility integrates carbon capture technology to purify carbon dioxide exhaust to food-grade standards, enabling commercial sales for food and beverage applications.

VH Global Energy highlighted that the project would deliver high-efficiency, net-zero flexible power, and also address a structural shortage in the industrial gases market.

The company pointed to recent volatility in UK electricity prices, which spiked to £1,778 per MWh earlier in February due to low wind generation, reduced interconnector imports, and unseasonably cold weather.

VH Global Energy said the flexible nature of its asset, combined with carbon capture technology, positioned it to support the UK electricity grid while mitigating environmental impact.

"We are very pleased to have achieved an important milestone in this unique project, with the successful production of first carbon dioxide signalling the late stages of commissioning activities," said Richard Lum, co-chief investment officer of Victory Hill Capital Partners.

"The UK requires further firming capacity on the grid to support the build out of large-scale renewables in the coming years, which gives rise to intermittency issues as well as the withdrawal of inertia from the grid.

"Rhodesia is a unique low carbon solution to providing firming power capacity in the UK, that also meets a corresponding demand for sustainably sourced food grade carbon dioxide, without the need for subsidy to underpin its operations.

"We are confident of the need for the build out of further flexible power and CCR schemes as the demand for firm power created by the increasing predominance of energy intensive AI driven digital infrastructure in the UK will allow investors ample opportunity to generate robust returns whilst making a positive sustainability impact."

At 1102 GMT, shares in VH Global Energy Infrastructure were down 0.9% at 57.28p.

Reporting by Josh White for Sharecast.com.