Carbon Storage

The NSTA regulates offshore carbon dioxide storage – we are the licensing authority and approve and issue storage permits – and maintains the carbon storage public register.

DESNZ lead government policy on carbon capture, utilisation and storage.

When exercising its functions, under the Energy Act 2016, the NSTA is required, so far as is relevant, to have regard to the development and use of facilities for the storage of carbon dioxide, and of anything else (including, in particular, pipelines) needed in connection with the development and use of such facilities.

The NSTA will work with government, industry and other relevant stakeholders to identify synergies and promote opportunities where development of carbon dioxide storage can contribute to ensuring the economic recovery of the UK's oil and gas resources, and support the drive to net zero carbon by 2050.

Licensing of carbon dioxide storage

The Energy Act 2008 (the Act) provides for a licensing regime that governs the offshore storage of carbon dioxide. It forms part of the transposition into UK law of EU Directive 2009/31/EC on the geological storage of carbon dioxide. The Carbon Dioxide (Licensing etc.) Regulations 2010 (SI 2010/2221), which transpose many other requirements of the directive, came into force on 1 October 2010.

The regime applies to storage in the offshore area comprising both UK territorial sea and beyond designated as a gas importation and storage zone (GISZ) under section 1(5) of the Act.

The NSTA is the licensing authority for offshore storage except within the territorial sea adjacent to Scotland, which Scottish ministers authorise. In addition to applying for a licence, developers must obtain a grant of the appropriate rights from The Crown Estate or the Crown Estate Scotland.

English Channel Carbon Storage Applications

On 30th April 2024, the NSTA opened a competitive process inviting applications for Carbon Dioxide Appraisal and Storage Licences in an area in the English Channel. These licences grant exclusive rights for the exploration and appraisal of potential storage sites for carbon dioxide in the subsurface. Applicants had to note their interest in submitting an application within the first two weeks of the process, and had to submit applications by Wednesday 5th June 2024.

The NSTA will subsequently undertake technical evaluations of applications received, and OPRED will make an Appropriate Assessment under the Habitats Regulations.

Full information on the process can be found here.

Carbon Dioxide Appraisal and Storage Licensing Round

The window for the NSTA to receive nominations for carbon dioxide appraisal and storage licence areas closed on Friday 13th May 2022. Following consideration of nominations received, on 14th June 2022 the NSTA launched a carbon storage licensing round, inviting applications for a number of areas across the UKCS including the Northern North Sea, Central North Sea, East Irish Sea and Southern North Sea.

Applications for the carbon storage licensing round closed at 13:00 BST on 13th September 2022. On 18 May 2023 the NSTA offered for award 20 carbon storage licences at offshore sites. On 15 September 2023 the NSTA announced the list of companies which have accepted licences. Full information on the round can be found here.

Future nomination opportunities will be available at a time to be decided by the NSTA.

On 5 March 2021 the NSTA published a notification that it has received an application for a Carbon Dioxide Appraisal and Storage Licence pursuant to Chapter 3 of the Energy Act 2008 (the ‘Act’), in the Southern North Sea of the United Kingdom Continental Shelf. The Notification of Application can be viewed here, which includes details of the area covered in the application (the “Area”).

The deadline of this Notice has now passed (5pm Thursday 18 March). The NSTA will not consider any further applications for Carbon Dioxide Appraisal and Storage Licences for the Area, other than those notified to the NSTA prior to the deadline.

On 2 February 2021 the NSTA published a notification that it has received an application for a Carbon Dioxide Appraisal and Storage Licence pursuant to Chapter 3 of the Energy Act 2008 (the ‘Act’), in the Southern North Sea of the United Kingdom Continental Shelf. The Notification of Application can be viewed here, which includes details of the area covered in the application (the “Area”).

The deadline of this Notice has now passed (5pm Tuesday 16^th February). The NSTA will not consider any further applications for Carbon Dioxide Appraisal and Storage Licences for the Area, other than those notified to the NSTA prior to the deadline.

On 22 June 2020, the NSTA published a notification that it has received an application for a Carbon Dioxide Appraisal and Storage Licence pursuant to Chapter 3 of the Energy Act 2008 (the ‘Act’), in the Liverpool Bay Area of the United Kingdom Continental Shelf. The Notification of Application can be viewed here, which includes details of the area covered in the application (the “Area”).

As of 5pm Monday 6^th July 2020, the NSTA had not received any additional applications, and will not consider any further applications for Carbon Dioxide Appraisal and Storage Licences for the Area.

Please be aware that (among other necessary consents and approvals) a Crown Estate Lease is required in order to carry out carbon dioxide storage activities in accordance with the Act. The Crown Estate’s policy document dated 12th May 2020 setting out who it will consider applications from for carbon dioxide transportation and storage rights is available at: https://www.thecrownestate.co.uk/media/3518/tce-role-ccus-may2020.pdf

Related information

For further information please contact: correspondence@nstauthority.co.uk

Guidance on Carbon Store Naming

Before a carbon storage permit application is submitted to the NSTA, a name for the proposed storage site must be agreed with the NSTA. An Operator may request a name, or to reserve a name, by writing to the NSTA using the attached template, and providing the required information to Carbon.Storage@nstauthority.co.uk. The name is usually discussed as part of the Define Phase of a carbon storage project, but operators may request the NSTA’s agreement at any time before then by writing to the NSTA.

NSTA Approach on Carbon Dioxide Appraisal and Storage Licence Transfers and Changes in Control

Should a licensee wish to transfer (or partially transfer) its Carbon Dioxide Appraisal and Storage Licence or seek a change in control of the licensee, the NSTA’s consent must be obtained prior to the event.

The NSTA’s approach can be found here.

Carbon storage public register

Article 25 of the Directive on Geological Storage requires the competent authority to establish and maintain a register of the storage permits granted; and a permanent register of all closed storage sites and surrounding storage complexes, including maps and sections of their spatial extent and available information relevant for assessing that the stored CO2 will be completely and permanently contained.

Section 29 of the Energy Act provides that the NSTA must maintain a register containing prescribed information relating to licences. The Act sets out a number of exemptions to information being provided such as information that would be contrary to the interests of national security.

More Information

It is important that the register provides as much information as possible on a storage development and should contain all the items listed below:

a copy of the licence, which will show: name and address of the licence holders and the operator; the appraisal term (during which the storage permit must be applied for); licence assignments if any; whether the licence has been revoked or relinquished; The Crown Estate lease number.
a copy of the storage permit, which will show: the injection period (the operational term); the committed volume of CO₂ to be stored over the operational term; the permitted composition of the CO₂ to be injected; maps showing the extent of the storage site and the storage complex; the approved monitoring plan (including updated monitoring plans); the approved corrective measures plan; the approved provisional post closure plan; the composition of the financial security
estimates of the total volume of storage capacity for carbon dioxide available in the storage site.
notices served by the competent authority.
details of significant irregularities or leakage events and remedial actions.
copies of all other reports to the competent authority.

For full details see: The Public Register

UK carbon dioxide storage