New Delhi: The United Kingdom (UK) has awarded licenses to 14 companies, including oil majors like Shell and Exxon Mobil, BP and Eni, in its first-ever carbon storage licensing round. The North Sea Transition Authority (NSTA), UK’s executive non-departmental public body sponsored by its Department for Energy Security and Net Zero, said on September 15, “A total of 14 companies have been awarded 21 licences in depleted oil and gas reservoirs and saline aquifers which cover around 12,000sq km – an area equivalent to the size of Yorkshire.”
The locations could store up to 30 million tonnes of CO2 per year by 2030, approximately 10 percent of UK’s annual emissions which were 341.5 million tonnes in 2021, said NSTA. Shell, Perenco and ENI have all been awarded licences off the coast of Norfolk in sites which could form part of the Bacton Energy Hub — a carbon storage, hydrogen and offshore wind project, which could provide low-carbon energy for London and the South East for decades to come and help in the drive to net zero greenhouse gas emissions.
Other locations include sites off the coasts of Aberdeen, Teesside, and Liverpool.
It is estimated that as many as 100 storage licences will be needed to meet the requirements for reaching net zero. The volume of applications received for the first round demonstrated the industry’s desire for further opportunities, said the NSTA. The NSTA will assess the response and the quality of opportunities in locations across the UK before deciding when to run a second round.
Six licences have already been granted by the NSTA and the UKL 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 the industry the certainty it requires to deploy carbon storage at pace, said NSTA in a statement.
“The UK has one of the largest potential carbon dioxide storage capacities in Europe, putting us in prime position to be world leaders in carbon capture – which is why we’ve committed an unprecedented £20 billion to develop the early stage development of carbon capture, usage and storage (CCUS),” Lord Callanan, Minister for Energy Efficiency and Green Finance, said.
“These new licences confirmed today will be vital to realising our CCUS potential, playing a key role in the energy transition to help boost our energy security and achieve our net zero targets, while also bringing in private investment and supporting thousands of jobs,” the minister added.
Stuart Payne, NSTA Chief Executive, said, “Carbon storage will play a crucial role in the energy transition, storing carbon dioxide deep under the seabed and playing a key role in hydrogen production and energy hubs.
The NSTA, The Crown Estate (TCE) and Crown Estate Scotland (CES) are working in close collaboration to help meet the UK government’s ambitious carbon storage targets of 20-30 million tonnes of CO2 emissions per year by 2030, and over 50 million tonnes by 2035, and make a significant contribution to net zero, said NSTA in the statement.