Orcadian unveils offshore gas-powered AI data centre with carbon capture plan
North Sea energy developer Orcadian Energy has unveiled plans to transform one of its offshore gas licences into a low-carbon power hub for artificial intelligence, combining gas-fired electricity generation with carbon capture and an offshore data centre.
The AIM-listed company announced it has begun the assessment phase for developing the Earlham and Orwell gas fields in the southern North Sea, proposing what it describes as an innovative “gas-to-wire” concept that could become one of the UK’s first large-scale offshore data centres.
Under the proposal, natural gas from the Earlham and Orwell fields would fuel an offshore power station equipped with carbon capture technology. The captured CO₂ would then be reinjected into the Earlham reservoir, while the electricity generated would directly power a co-located 200 MW offshore data centre, avoiding the need for grid connections or long-distance electricity transmission.
Orcadian believes the project could form the first phase of what it calls the Earlham Gigagrid, an offshore low-carbon energy and data infrastructure network that could eventually expand to more than 1 GW of dispatchable power dedicated to AI computing.
The company said the concept has been driven by rapidly increasing global demand for computing capacity as artificial intelligence accelerates investment in data centres and electricity infrastructure.
Unlike conventional gas developments, Earlham contains unusually high levels of carbon dioxide, with around 49% of the gas comprising CO₂. While this has historically made commercial development unattractive, Orcadian believes it creates an opportunity to generate electricity offshore while capturing and permanently storing most of the emissions back in the reservoir.
The company estimates the Earlham field contains 114 billion cubic feet (bcf) of recoverable methane, with the nearby Orwell field expected to contribute a further 31 bcf. Gas from both fields would be blended before being used to fuel turbines at the offshore power station.
Captured carbon dioxide would be compressed and reinjected into the Earlham reservoir to maintain pressure and improve gas recovery, creating what the company describes as an enhanced gas recovery scheme with significantly lower emissions than conventional gas-fired power generation.
According to Orcadian, the proposed development would eliminate the need for gas export pipelines, carbon dioxide transport infrastructure and major electricity transmission connections to the mainland. The company also argues that locating data centres offshore provides several advantages, including access to seawater for cooling, reduced planning constraints and avoiding additional pressure on the UK’s electricity grid.
To progress the project, Orcadian is establishing a new subsidiary, Earlham Gigagrid Ltd, which will incubate the development and provide a vehicle for future third-party investment without diluting shareholders’ interests in the company’s existing oil and gas portfolio.
The company expects major cloud computing providers and specialist artificial intelligence infrastructure firms to become potential partners if the project moves towards commercial development. Orcadian identified global hyperscale technology companies, including Google, Amazon, Meta and Microsoft, alongside emerging AI-focused cloud providers, as potential future developers of the data centre facilities.
The assessment phase will involve preparing a Concept Select Report for submission to the North Sea Transition Authority (NSTA). Development will require regulatory approval, including a Letter of No Objection from the NSTA, alongside environmental permits, carbon storage licences and other statutory consents.
As part of the announcement, Orcadian also confirmed it has agreed revised repayment terms with The Independent Power Corporation Limited for loans totalling approximately £1.34 million. The debt has been extended until 31 December 2027 with interest fixed at 8.5%.
Steve Brown, Chief Executive Officer of Orcadian Energy, said the Earlham development could significantly enhance the value of the company’s licence while supporting Britain’s ambitions in artificial intelligence and low-carbon energy.
“We believe that this development concept for Earlham, focussed on generating low-carbon power offshore to supply an offshore data centre, can be transformational for the value of our P2680 licence,” he said.
Brown added that the project could generate low-carbon electricity for AI infrastructure without requiring government subsidies or placing additional demand on the national electricity grid.
If approved, the Earlham Gigagrid would represent a new approach to combining offshore gas production, carbon capture and digital infrastructure, potentially positioning the UK as an early developer of offshore AI data centres powered by dedicated low-carbon energy systems.
