Orcadian Energy Proposes 200 MW Offshore Data Center on CO2-Rich Gas Field in the North Sea

Orcadian Energy plc, a North Sea-focused oil and gas exploration company listed on London’s AIM market, has initiated the assessment phase for an offshore power station and a co-located data center that would be built atop a gas discovery that has remained undeveloped for three decades due to its high carbon dioxide content. The proposal marks a novel attempt to monetize stranded gas assets while meeting growing demand for low-carbon computing infrastructure.

The company announced on Thursday that it will establish a new entity, Earlham Gigagrid Ltd, and intends to assign its 100 percent interest in license P2680 to a Gigagrid subsidiary. The license, located in the Southern North Sea, contains the Earlham gas discovery, the decommissioned Orwell field, and the undrilled Clover prospect. The planned complex would consist of three bridge-linked platforms: a wellhead platform supporting two production wells and one carbon dioxide injection well, a power station, and a data center hall on a dedicated jacket.

The first phase is expected to supply approximately 200 MW of electrical power, measured as IT load, with high rack density supported by direct-to-chip liquid cooling. Orcadian believes that subsequent halls could deliver over a gigawatt of dispatchable low-carbon power without adding stress to the national grid. “We believe that this development concept for Earlham, focused on generating low-carbon power offshore to supply an offshore data centre, can be transformational for the value of our P2680 licence,” said Steve Brown, Chief Executive Officer of Orcadian, in the announcement.

The Earlham gas is 49 percent carbon dioxide, making pipeline export to shore uneconomical. Talisman discovered the field in 1995, and BP abandoned an appraisal well the following year because of the gas’s CO2 content. According to Orcadian’s directors, generating power at the field, capturing the carbon dioxide, and reinjecting it into the reservoir is now the optimal route to monetize the resource. To improve combustion quality, Orcadian will blend Earlham gas with gas from the Orwell field to achieve an average methane content of 50 percent. The company estimates Earlham holds 114 billion cubic feet of methane on a P50 basis and believes an Orwell redevelopment could deliver an additional 31 billion cubic feet.

Orcadian does not intend to build the facilities itself. Instead, it expects the development to be undertaken by hyperscalers or neocloud providers, naming CoreWeave, Nebius, and Crusoe Cloud among potential partners. The company has only begun preparing a Concept Select Report, and all subsequent steps depend on regulatory approvals, including the North Sea Transition Authority’s consent to assign license P2680 and the issuance of a Letter of No Objection, as well as any required carbon storage license. Orcadian has also not yet determined which turbine can burn the low-calorie gas, calling that a key outcome of the concept select process. The announcement does not disclose a plateau rate or field life for the combined 145 billion cubic feet resource.