The North Sea Transition Authority (NSTA) has launched a new carbon storage licensing round, opening up 14 sites in Scottish and English waters as the UK steps up efforts to decarbonise heavy industry and build a large-scale carbon capture and storage (CCS) sector.
Backed by up to £21.7 billion in government funding, CCS projects are expected to add around £5 billion a year to the UK economy by 2050 and support 50,000 long-term jobs.
The areas on offer include depleted oil and gas fields selected by the NSTA, alongside saline aquifer sites put forward by industry through a recent Call for Nominations designed to accelerate projects with the strongest chance of delivery.
Five of the locations are in Scottish waters, with nine off the coast of England. The sites were identified following extensive consultation with Crown Estate Scotland and The Crown Estate. Any successful bidder will need to secure a seabed agreement from the relevant body before development can move forward.
Stuart Payne, NSTA chief executive, said the launch marks a major step for the sector. “The UK Government has signalled its total support for carbon storage and the jobs and investment it can create as a vital part of the energy transition.
“We are proud to be launching this licensing round, working in collaboration with other authorities especially Crown Estate Scotland and The Crown Estate to support this vital industry in the next stage of its development.”
Crown Estate Scotland chief executive Ronan O’Hara said CCS will be central to cutting emissions in the most challenging parts of the economy.
“Carbon capture and storage (CCS) is an increasingly well-established process with the potential to play a key role in reducing carbon dioxide emissions, especially in hard to abate industries, which is why we are pleased to be working closely with CCS developers, the North Sea Transition Authority, The Crown Estate and governments to ensure that deployment is co-ordinated to make the most of Scotland’s unique geological storage and to provide new economic opportunities for Scotland and the wider UK by inviting expressions of interest alongside NSTA licence applications.”
The Crown Estate’s managing director of marine, Gus Jaspert, said careful planning is essential as demand for seabed space grows.
“Carbon capture is vital in supporting hard to abate industries to decarbonise and a core element of the UK’s energy transition. We have worked with the NSTA to ensure the interests of other vital sectors including offshore wind, aggregates, cables and nature were considered," he added. "We look forward to continuing to work together and collaborating through our Marine Delivery Routemap programme as we evolve our approach to seabed leasing for carbon capture and storage to support the sector’s development.”
The NSTA said it will continue working with both Crown Estate Scotland and The Crown Estate to better align licensing and leasing processes, with the aim of speeding up applications and investment.
CCS involves capturing carbon dioxide from industrial sites, transporting it and storing it deep underground in offshore geological formations. It is seen as critical to decarbonising the UK’s major industrial hubs.
