The North Sea Transition Authority said yesterday that carbon storage offshore has moved a step closer, with 26 bids coming in for the UK's first-ever carbon-storage licensing round.
A total of 19 companies eager to play a part in the energy transition expressed interest in the 13 areas on offer, which are off the coasts of Aberdeen, Teesside, Liverpool and Lincolnshire.
The round was launched in June, with applications closing on September 13.
NSTA will now evaluate the bids with a view to awarding licences in early 2023.
Once the new sites are in operation, they could make a significant contribution to the aim of storing 20million-30million tonnes of CO2 per year by 2030.
NSTA said the round was opened in response to government targets and significant commercial interest.
Combination of attributes
The areas selected offer a combination of attributes such as the right geology, proximity to existing infrastructure and links to industrial clusters which are looking to carbon storage to meet their decarbonisation goals.
NSTA said the sites were only made available for licensing after thorough consideration of matters such as co-location with offshore wind, potential overlaps with petroleum licences and environmental issues.
The round is likely to be the first of many, as up to 100 CO2 stores could be needed for the UK to meet the net-zero by 2050 target.
The Intergovernmental Panel on Climate Change report this April emphasised that carbon capture and storage (CCS) technologies are necessary for power and industry sectors to reach net-zero emissions.
In CCS. CO2 is captured from industrial processes and then transported, via ship or pipeline, for storage in rocks deep beneath the seabed.
The differing sizes and scale of each project means they will progress at different speeds, but the first injection of CO2 could come four to six years after a licence is awarded.
Close co-operation
NSTA said the CCS industry requires close co-operation between a number of organisations and, once an applicant has been awarded a licence from the NSTA, they will also need to obtain a lease from the Crown Estate or Crown Estate Scotland before they can progress a project.
Nick Richardson, NSTA head of exploration and new ventures, said: "We were very pleased with the quantity and quality of applications we have received from a diverse range of applicants.
"The clear appetite among companies to get involved shows that the UK is well-positioned to become a world-leader in the sector.
"Carbon storage can play a big part in reducing greenhouse gas emissions into the atmosphere and awarding additional licences in 2023 will be a significant step forward."
In the summer, Storegga - the company behind the Acorn CCS facility near Peterhead - said it had signed a "groundbreaking" collaboration deal with Aker Carbon Capture.
Acorn project
The memorandum of understanding will see the pair work together on CCS projects at scale, helping industrial emitters gain access to "full value chain offerings" in the UK.
Storegga is the lead developer on the Acorn project, the backbone of the Scottish Cluster which seeks to store emissions from sites like Ineos' petrochemicals facility at Grangemouth.
FTSE 100
The UK’s top share index, the FTSE 100, was down four points at 7,154 shortly after opening this morning, following yesterday’s 78-point loss.
Brent crude futures slipped by 0.62% to $89.90 a barrel.
Companies reporting today
- Full-year results: European Opportunities Trust, Smiths Group
- Trading updates: Biffa, Investec