Zak Mir speaks with Orcadian Energy CEO Steve Brown

Zak Mir talks to Steve Brown, CEO of Orcadian Energy (AIM: ORCA), as the company announces it has commenced the Assessment Phase for the Earlham and Orwell gas fields, with a preferred development concept involving an offshore power station with carbon capture to fuel a co-located data centre, creating an "Earlham Gigagrid."

This project aims to monetize the gas resource, estimated at 114 billion cubic feet for Earlham and 31 billion cubic feet for Orwell, by generating approximately 200 MW of low-carbon power for a data centre, with captured carbon dioxide reinjected into the Earlham reservoir. 

The company has also agreed to a deferred repayment schedule for approximately £1.34 million in loans from The Independent Power Corporation Limited, now due by December 31, 2027, with interest fixed at 8.5% per annum.

Orcadian Begins Assessment Phase for Offshore Gas-to-Data Centre Project

Orcadian Energy has commenced the Assessment Phase for the development of the Earlham and Orwell gas fields on its 100%-owned licence P2680.

The company’s preferred development concept is an offshore power station with integrated carbon capture, fuelled by gas from Earlham and Orwell, to supply a co-located offshore data centre. Orcadian said the project could form the first phase of an islanded, low-carbon offshore grid, branded the Earlham Gigagrid.

The concept is designed to monetise Earlham gas, which has a high carbon dioxide content, by generating power at the field, capturing the carbon dioxide and reinjecting it into the reservoir.

The company said a power station at Earlham could supply around 200MW of electrical power, or IT load, to an offshore data centre.

Orcadian and its consultants have conceived a platform complex capable of supporting a 200MW offshore data centre hall and providing the energy for that facility.

The group is establishing a new company, Earlham Gigagrid Ltd, to incubate the project and enable potential direct investment from third parties.

Orcadian estimates Earlham contains 114bcf of methane resources, while the previously depleted Orwell field could produce a further 31bcf.

The company said the proposed scheme could reduce pressure on the national grid while supporting rising demand for compute power driven by artificial intelligence.

Chief executive Steve Brown said the concept could be transformational for the value of licence P2680 and may ultimately attract interest from hyperscalers and specialist AI cloud infrastructure providers. He added that Orcadian will engage with the NSTA and other relevant regulators as part of the concept select process.

The project remains subject to NSTA approval, a Letter of No Objection for the selected concept, regulatory consents, commercial agreements and financing.