UK’s first carbon capture schemes granted licences

Twenty carbon capture and storage schemes (CCS) have been granted licences by the North Sea Transition Authority (NSTA).

It is the first time that licences have been granted for CCS schemes in the UK.

The 20 proposed projects have been put forwards by 12 developers. If all the schemes are put into operation, they are estimated to store up to 30 million tonnes of carbon dioxide (CO2) per year by 2030, just under 10% of total UK’s current annual emissions.

Stuart Payne, NSTA Chief Executive, said: “This is an exciting and important day. As a nation, we cannot meet our decarbonisation targets without carbon storage. This is net zero delivery in action.

“The awards we offer today could store around 10% of the UK’s emissions, and through our engagement with applicants, we will have committed work plans in place such as seismic surveys and drilling of wells – we are working with industry to move at real pace.

“The UK’s offshore waters remain the crown jewel of our energy mix, providing energy security, emissions reduction and carbon storage.”

The licences include a range of geological store types and were selected following a process which considered attributes such as the geology, proximity to existing infrastructure – as is found at Bacton off the coast of Norfolk – and links to industrial clusters which are expecting carbon storage to help meet decarbonisation goals.

In total, 19 developers put forwards applications. The names of successful bidders cannot be announced until they officially accept the award, an NSTA spokesperson added.

Spirit Energy – a Centrica subsidiary – is among the developers to have confirmed that it has been awarded a licence. Spirit Energy’s scheme involves repurposing the North and South Morecambe gas fields for carbon capture and storage.

Neil McCulloch, chief executive of Spirit Energy, said: “Spirit Energy has ambitions for the two gas fields to form the core of a green super-hub. This would explore opportunities like direct air capture, the manufacture of blue hydrogen, the production of green hydrogen, the integration of other renewable power generation facilities, and energy storage – all of which would put Barrow and the North West on the map as a centre for low-carbon innovation.”

Enquest has also confirmed that it has been awarded four licences while Neptune Energy has confirmed that it has been awarded three licences.

Perenco was also awarded licences, a company spokesperson said, although the number has yet to be disclosed.

Eni and Equinor have said they applied but have yet to confirm if their applications were successful.

The licence holders will also need to obtain a seabed lease from The Crown Estate or Crown Estate Scotland before a project can progress. Further consents and approvals will be required ahead of any appraisal activity taking place on carbon storage licences.

Lord Callanan, minister for energy efficiency and green finance, said: “These new licences, together with fresh powers granted to NSTA within the landmark Energy Bill, will develop our most comprehensive picture yet of UK’s carbon capture and storage potential, strengthening our energy security and cutting emissions while creating thousands of skilled British jobs.”

This first carbon storage licensing round is likely to be the first of many as up to 100 CO2 stores could be needed for the UK to meet its net zero by 2050 target.

Ruth Herbert, Carbon Capture and Storage Association chief executive, added: “This first carbon storage licensing round from the NSTA is a vital step towards unlocking the UK’s full CO2 storage potential. Given the climate emergency, we hope this will be the first of many such rounds and that further sites around the UK will have opportunity to apply in the near future.”