- Industry continues to grow and build momentum
- NSTA encouraged by strong engagement from 1st Round licensees
- Applications more likely to result in stores following extensive research and collaboration ahead of the round
The NSTA has received bids for more than 2 million acres of seabed at the 24 March closure of the UK’s second carbon storage licensing round.
The applications pave the way for further carbon stores in the UK and highlight the sustained progress in the sector, which has experienced a series of landmark developments in the past few months as existing projects head towards first injection.
The second carbon storage licensing round was launched in December 2025, following close consultation with The Crown Estate and Crown Estate Scotland, and other seabed users, and was launched after receiving expressions of interest.
It is hoped that, if licences are offered in these areas, they will build on the success of the four storage permits already awarded in two different locations in the UK.
Track 1 project Endurance was granted a storage permit allowing it to move towards a possible first injection date in 2028 while the second Track 1 project, HyNet, was awarded three storage permits, which will also allow it to target first injection in 2028.
The UK government expects the two sites to directly create 4,000 jobs in the North West and North East of England and, in the long-term, support 50,000 jobs in the rest of the country.
Endurance, off the coast of Teesside, also recently started drilling an appraisal well, which follows the one spudded in the Hewett field in the Southern North Sea by the Bacton CCS project.
The NSTA has demonstrated support for the industry with a series of initiatives including publishing maps highlighting areas of future carbon storage appraisal potential, and issuing a set of stewardship expectations to help licensees.
Andy Brooks, NSTA Director of New Ventures, said:
'The growth of the carbon storage sector is great news for UK jobs, growth, skills and the supply chain.
'The UK holds a unique position in developing offshore energy in general, including carbon storage. As we transition, we benefit from decades of experience in the North Sea, commercial know-how, optimal geological conditions, and spatial co-ordination.'
The NSTA will now scrutinise the applications received and work with the applicants and other stakeholders before deciding on whether or not to award licences. This will include further consultation and discussions with bodies such as The Crown Estate and Crown Estate Scotland to ensure any awarded areas are spatially planned and co-ordinated alongside other marine sectors.
Background
Net zero boost as carbon storage licences accepted
Carbon storage public register
Government reignites industrial heartlands 10 days out from the International Investment Summit
Source: NSTA
