UK’s North Sea Transition Authority (NSTA) is launching the country’s first-ever carbon storage licensing round. The process will include 13 new carbon storage areas off the coast of Aberdeen, Teesside, Liverpool, and Lincolnshire, and made up of a mixture of saline aquifers and depleted oil and gas fields. First injection of carbon dioxide (CO2) could come as early as 4-6 years after the license award.
There are already six carbon storage licenses on the UK Continental Shelf, which could meet up to 20% of storage needs if they reach their maximum potential of 40-million tonne/year (tpy) injection rates by the mid-2030s. At this stage, they offer the potential to make a very significant contribution to decarbonization of the UK.
Capacity estimates of the areas offered in the current round are uncertain but, combined with the previously issued licenses, the sites will contribute to the UK’s goal of storing 20-30 million tpy of CO2 by 2030. NSTA estimates that as many as 100 CO2 stores could be required to meet the country’s net zero by 2050 target, making the new round likely the first of many.
Carbon capture and storage will play a crucial role in decarbonizing the UK’s major industrial hubs such as Teesside and Humberside, according to NSTA. CO2 will be transported from where it was produced, via ship or in a pipeline, and stored offshore in geological formations.
NSTA said it fully considered issues including colocation with offshore wind, environmental issues, potential overlaps with existing or future petroleum licenses, and other activities in ensuring key technologies can be taken forward.
The application window closes Sept. 13, 2022, with any new licenses expected to be awarded in early 2023. In addition to being awarded a license from the NSTA, successful applicants will also need to obtain a lease from The Crown Estate or Crown Estate Scotland, depending on location, before they can progress a project.
