The UK’s North Sea Transition Authority (NSTA) has announced a list of companies that have accepted licenses following the UK’s first round of carbon storage licences.
A total of 14 companies have received 21 licenses in depleted oil and gas reservoirs and saline aquifers covering about 12,000 square kilometers, the NSTA said in a statement posted on its website. The sites could store up to 30 million tonnes of CO2 a year by 2030, according to the NSTA, which highlighted that this equates to around 10 per cent of the UK’s annual emissions.
Shell, Perenco and Eni have received licenses off the Norfolk coast at sites that could form part of the Bacton Energy Hub, the NSTA said in the statement. The organization described Bacton as a carbon storage, hydrogen and offshore wind project that could provide low-carbon energy for London and the South East “for decades to come and help achieve net zero emissions of greenhouse gases”.
Spirit Energy Production UK Ltd, Pale Blue Dot Energy Ltd, Enquest CCS Ltd, Synergia Energy CCS Ltd, Neptune Energy CCS Projects, Chrysaor Production UK Ltd, BP Exploration Operating Company Ltd, Carbon Catalyst Ltd, Wintershall Dea Carbon Management Solutions UK, Esso Exploration and Production UK Ltd, and Equinor New Energy Ltd were also awarded a participatory licence, according to the NSTA statement.
It is estimated that up to 100 storage licenses will be needed to meet the requirements to reach net zero, the NSTA said in the statement, adding that “the volume of applications received for the first round demonstrated the industry’s desire for new opportunities.”
“The NSTA will assess the response and quality of opportunities in UK locations before deciding when to run a second round,” the organization said in a statement.
“The NSTA has already granted six licenses and the government recently announced GBP 20 billion [$24.86 billion] funding for the progression of these existing projects,” the NSTA added.
In the statement, the NSTA highlighted that The Crown Estate (TCE) and Crown Estate Scotland (CES) are working closely together to help achieve the UK Government’s “ambitious” carbon storage targets of 20-30 million tons of CO2 emissions. per year by 2030, and more than 50 million tonnes by 2035, “and make a significant contribution to net zero”.
“Carbon storage will play a crucial role in the energy transition, storing carbon dioxide deep in the seabed and playing a key role in hydrogen production and energy hubs,” said NSTA Executive Director , Stuart Payne.
“It is exciting to award these licenses and our teams will support the licensees to achieve the first injection of carbon dioxide as soon as possible. We will also continue to work with industry and government to enable further licensing activity and support the momentum of the UK towards net zero emissions,” he added.
Ruth Herbert, chief executive of the Carbon Capture and Storage Association (CCSA), said in the statement that “CCSA welcomes the acceptance of carbon storage licences, a significant step towards achieving the net zero”.
“These licenses mark a substantial milestone towards the widespread deployment of CCS. With the potential to store almost 10 per cent of the UK’s greenhouse gas emissions at these new locations, starting to develop these sites paves the way for a cleaner and more sustainable future,” Herbert added.
“The next step is a carbon capture deployment plan that will allow us to fully exploit our future CO2 storage capacity,” Herbert continued.
Lord Callanan, UK Minister for Energy Efficiency and Green Finance, said: “The UK has one of the largest potential carbon dioxide storage capacities in Europe, which puts us in a prime position to to be world leaders in carbon capture, which is why we have committed an unprecedented £20 billion to develop the early stage development of carbon capture, use and storage.”
“These new confirmed licenses … will be vital to realizing our CCUS potential, playing a key role in the energy transition to help increase our energy security and achieve our net zero goals, while bringing private investment and supporting thousands of jobs,” he said. added
In a statement published on its website, industry body Offshore Energies UK (OEUK) said the announcement of the NSTA’s carbon storage license “marks an important step towards reducing the footprint of the country’s carbon, while providing growth opportunities for energy workers and companies.”
“Carbon capture and storage will be an important tool in the fight against climate change and drive economic growth,” said Mike Tholen, director of policy and sustainability at OEUK.
“With the potential to store up to 78 billion tonnes of carbon dioxide under the UK’s oceans, the UK can lead the way,” he added.
“We have an oil and gas industry with the experience, skills and people to make this a British success story, and these licenses are another step towards achieving that goal. If we get it right, no not only could it significantly reduce the UK’s carbon footprint, but it could position us as a world leader in the low-carbon space, creating opportunities for UK people and businesses and building on our industrial strengths.” Tholen continued.
“We’re going to need 100 or more such sites to break even, so we shouldn’t stop there. Companies investing in nascent opportunities like carbon storage will require the cash flow of an oil business and stable and predictable gas to fund these technologies,” Tholen said.
Earlier this month, the NSTA announced that greenhouse gas emissions from UK offshore oil and gas production fell for the third consecutive year in 2022 “as the industry continue its push to reach net zero by 2050.”
“Last year’s estimated three percent reduction contributed to a 23 percent drop in greenhouse gas emissions between 2018 and 2022, according to the latest emissions monitoring report from the North Sea Transition Authority,” the NSTA said in a statement posted on its website on September 5. .
“This industry remains on track to meet targets to reduce emissions by 10 per cent by 2025 and 25 per cent by 2027, as agreed in the North Sea Transition Agreement with the UK Government in March 2021,” he added.
“However, bold action will be required to meet the key target of halving emissions by 2030, the absolute minimum NSTA expects from industry, which must strive to exceed this target,” he warned the organization
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