- 14 locations available to high-quality applications
- In consultation with Crown Estate Scotland and The Crown Estate to support the management and long-term development of the UK’s seabed
- Stores could provide up to 2 gigatonnes of additional CO2 storage capacity
The North Sea Transition Authority (NSTA) has today (9 December) 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 which will 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 earlier this year enabled industry partners to indicate sites of interest which offered a greater chance of successful project delivery.
These areas were chosen following extensive consultation with The Crown Estate and Crown Estate Scotland, among others. Five areas will be in Scottish waters, with nine off the coast of England. 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.'
Ronan O’Hara, Chief Executive of Crown Estate Scotland, said:
'Carbon capture and storage (CCS) is an increasingly well-established process with the potential to play a key role in reducing carbon dioxide emissions, especially in hard to abate industries, which is why we are pleased to be working closely with CCS developers, the North Sea Transition Authority, The Crown Estate and governments to ensure that deployment is co-ordinated to make the most of Scotland’s unique geological storage and to provide new economic opportunities for Scotland and the wider UK by inviting expressions of interest alongside NSTA licence applications.'
Gus Jaspert, Managing Director, Marine at The Crown Estate, said:
'Carbon capture is vital in supporting hard to abate industries to decarbonise and a core element of the UK’s energy transition. We have worked with the NSTA to ensure the interests of other vital sectors including offshore wind, aggregates, cables and nature were considered. We look forward to continuing to work together and collaborating through our Marine Delivery Routemap programme as we evolve our approach to seabed leasing for carbon capture and storage to support the sector’s development.'
The NSTA will continue to work with both Crown Estate Scotland and The Crown Estate to explore opportunities to align licensing and leasing approaches in order to streamline application processes for developers.
CCS involves the geological storage of captured CO2 emissions from industrial processes and will play a crucial role in decarbonising the UK’s major industrial hubs. This CO2 is then transported from where it was produced and stored offshore, deep underground in geological formations.
Th UK’s first carbon storage licensing round in September 2023 saw 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.
It is important that momentum is maintained. The Climate Change Committee concluded that there was no viable path to net zero by 2050 without carbon storage.
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.
Background:
The NSTA has signed Statements of Intent with both CES and TCE to signal the organisations’ shared determination to work together and support CCS developers in the North Sea.
NSTA and CES agree to collaborate to harness the potential of the North Sea
Statement of Intent between The Crown Estate and The North Sea Transition Authority
Net zero boost as carbon storage licences accepted
Bids invited in UK’s first-ever carbon storage licensing round
The-Sixth-Carbon-Budget-The-UKs-path-to-Net-Zero.pdf
Further information including how to apply
Source: NSTA
