• NTSA launches UK’s second carbon storage licensing round

    Date posted:

    • Post Author

      Tracey Biller

  • The North Sea Transition Authority (NSTA) has just opened a carbon storage licensing round offering 14 locations in Scottish and English waters for exploration and appraisal, and with potential to provide future capacity to support industrial decarbonisation for the UK and Europe.

    The areas to be offered fall into two broad categories, depleted hydrocarbon fields selected by the NSTA, and saline aquifer sites identified following a ‘Call for Nominations’ which took place earlier this year. Successful applicants for a carbon storage licence from the NSTA will require a seabed agreement from either Crown Estate Scotland or The Crown Estate in English waters before a project can progress.

    Stuart Payne, NSTA Chief Executive, said, “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.”

    The UK’s first carbon storage licensing round in September 2023 resulted in the award of 21 carbon storage licences. The NSTA subsequently awarded the first storage permits to two projects – Endurance and HyNet – allowing them to proceed towards first injection.

    The Endurance site, off the coast of Teesside, which could store up to 100 million tonnes of CO2, received a permit in December 2024, and Liverpool Bay-based HyNet, which could also store up to 100 mt CO2 over 25 years, received three permits in April 2025.

    The projects, funded from the UK’s government’s commitment of up £21.7bn, could contribute around £5 billion per year of gross value to the UK economy by 2050 and create 50,000 jobs long-term.

    The Licensing Round will run until Tuesday 24 March 2026, after which applications will be reviewed with a view to awarding licences in early 2027.

    • Search
    Year