The NSTA oversees the licensing regime for the storage of carbon dioxide on the United Kingdom Continental Shelf. Anyone who wishes to explore for or use a geological feature for the long-term storage of carbon dioxide in a UK offshore area must hold a CS licence issued by the NSTA.
Details of the licensing regime, licensing processes held to date, and guidance on how to apply for a CS licence can be found below.
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 30 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 5 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 13 May 2022. Following consideration of nominations received, on 14 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 on 13 September 2022. On 18 May 2023 the NSTA offered for award 20 carbon storage licences and on 15 September 2023 published the list of companies which 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 16th 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 6th 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 12 May 2020 setting out who it will consider applications from for carbon dioxide transportation and storage rights is available at: Carbon capture | The Crown Estate
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.
