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Net zero boost as UK carbon storage licences awarded
27/9/2023
A total of 14 companies have accepted carbon capture and storage (CCS) licences following the UK’s first-ever carbon storage licensing round.
The North Sea Transition Authority (NSTA) awarded 21 licences in depleted oil and gas reservoirs and saline aquifers to the 14 companies. The licences cover around 12,000 km2 – an area equivalent to the size of Yorkshire. According to the NSTA, the locations could store up to 30mn t/y of CO2 by 2030, approximately 10% of UK annual emissions which were 341.5mn tonnes in 2021.
Shell, Perenco and Eni were awarded licences off the coast of Norfolk, in sites which could form part of the Bacton Energy Hub – a proposed carbon storage, hydrogen and offshore wind project that could provide low-carbon energy for London and south-east England for decades to come and help in the UK government’s drive to reach net zero greenhouse gas emissions by 2050.
Other companies securing licences include BP, Chrysaor, Enquest, Neptune, Pale Blue Dot Energy, Spirit Energy and Synergia Energy, with carbon storage locations including sites off the coasts of Aberdeen, Teesside and Liverpool.
Commenting on the awards, Stuart Payne, NSTA Chief Executive, says: ‘Carbon storage will play a crucial role in the energy transition, storing CO2 deep under the seabed and playing a key role in hydrogen production and energy hubs.’
It is estimated that as many as 100 storage licences will be needed to meet the UK’s requirements for reaching net zero. The NSTA is to now assess the response to the first licensing round and the quality of opportunities in locations across the UK before deciding when to run a second round.
‘These licences mark a substantial milestone towards widespread deployment of CCS,’ comments Ruth Herbert, Chief Executive at the Carbon Capture and Storage Association. ‘With the potential to store almost 10% of the UK’s greenhouse gas emissions in these new locations, starting to develop these sites paves the way for a cleaner and more sustainable future. The next step is a carbon capture deployment plan to enable us to fully exploit our future CO2 storage capacity.’
Six licences have already been granted by the NSTA and the UK government recently announced £20bn funding for the progression of these existing projects. Two locations, Hynet and the East Coast Cluster, have been selected as Track 1, while Acorn and Viking CCS projects have been chosen as the Track 2 clusters.
‘The cluster sequencing process was set up to give industry the certainty it requires to deploy carbon storage at pace,’ notes the NSTA.
The UK government has set carbon storage targets of 20–30mn t/y by 2030, and over 50mn t/y by 2035, as part of its drive to reach net zero by 2050.
Some environmental bodies claim that the UK government’s focus on CCS is an expensive distraction from investing in low-carbon forms of energy. However, analysis from the Committee on Climate Change suggest it would be difficult to achieve the government’s ambitions without CCS.
