Bids invited in UK’s first-ever carbon storage licensing round

The North Sea Transition Authority (NSTA) is today (14 June) launching the UK’s first-ever carbon storage licensing round with 13 areas of exciting potential available.   

Andy Samuel, NSTA Chief Executive, said,   “this is an important day on the path to net zero emissions. In addition to the huge environmental benefits of significantly reducing carbon dioxide emissions into the atmosphere, the facilities will provide opportunities for many thousands of highly-skilled jobs. “  

The new carbon storage areas, alongside the six licences which have been issued previously, could have the ability to make a significant contribution towards the aim of storing 20-30 million tonnes of carbon dioxide (CO2) by 2030.   

The areas being offered for licensing are off the coast of Aberdeen, Teesside, Liverpool and Lincolnshire in the Southern North Sea, Central North Sea, Northern North Sea, and East Irish Sea and are made up of a mixture of saline aquifers and depleted oil and gas field storage opportunities.   

This round is envisaged to be the first of many as it is estimated that as many as 100 CO2 stores could be required in order to meet the net zero by 2050 target. 

Carbon capture and storage (CCS) involves the capture of CO2 emissions from industrial processes and will play a crucial role in decarbonising the UK’s major industrial hubs such as Teesside and Humberside. This CO2 is then transported from where it was produced, via ship or in a pipeline, and stored offshore, deep underground in geological formations.   

Andy added, “carbon storage is going to be needed across the world. There is growing investor appetite and we are keen to accelerate development of the carbon storage sector so that UK is well-positioned to be a global leader.”    

The level of interest already expressed suggests there will be strong competition meaning that prospective licensees will need to produce high-quality bids to win licences.  

There are currently six carbon storage licences on the UK Continental Shelf which could meet up to one-fifth of storage needs, if they reach their maximum potential of up to 40 million tonnes per annum (MTPA) injection rates by the mid-2030s.

The Government’s Ten-Point Plan, published in November 2020, supported the establishment of carbon capture, usage and storage in four clusters - in areas such as the North East, the Humber, North West, Scotland and Wales – encouraging private sector investment.

Energy & Climate Change Minister Greg Hands said, “We’re determined to make the UK a world leader in carbon capture, which will be crucial in helping us reduce emissions and protect the viability and competitiveness of British industry.”

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