The UK government’s recent decision to award carbon dioxide transportation and storage licenses to Liverpool Bay CCS Limited and Net Zero North Sea Storage Limited has been met with enthusiasm by the country’s offshore energy industry.
These licenses, known as the Track 1 clusters, will lay the groundwork for projects to capture carbon dioxide from industrial emitters and safely store it beneath the seabed.
This announcement marks a significant milestone in the UK’s efforts to decarbonize its economy and achieve net-zero emissions, according to Offshore Energy UK.
The Climate Change Committee has emphasized the importance of carbon capture and storage (CCS) as a crucial technology in this transition.
By capturing and storing carbon dioxide, these projects will help reduce emissions from industrial processes, support the production of low-carbon hydrogen, and ensure a reliable supply of dispatchable power.
The successful implementation of CCS has the potential to create tens of thousands of jobs and contribute significantly to the UK economy.
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With its extensive offshore storage capacity, transferable expertise from the oil and gas sector, and existing energy infrastructure, the UK is well-positioned to become a leader in CCS technology.
However, to realize this potential, the government must ensure that funding, permits, and consents are in place to enable these projects to move forward.
A clear funding timeline for the £20 billion allocated to the sector is essential, as well as timely progress on Track 2 clusters.
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Additionally, the UK government should create a market for carbon emitters and transportation and storage projects outside of the Track process to ensure a steady pipeline of work for the supply chain.
By accelerating policies to maximize the UK’s storage potential, including enabling non-pipeline transportation methods and removing barriers to cross-border storage, the government can help the country capitalize on its unique advantages and deliver a timely and homegrown energy transition.
