The North Sea Transition Authority (NSTA) has opened its second CO2 storage licensing round, making 14 new offshore areas available for exploration and appraisal as the UK accelerates the build-out of its long-term CO2 storage network.
The sites, located in Scottish and English waters, could collectively provide up to 2 gigatons of additional storage capacity, marking one of the UK’s most significant steps yet toward scaling commercial carbon sequestration.
Announced on December 9, the round includes two categories of sites: depleted hydrocarbon fields selected by the NSTA and saline aquifers nominated by industry during this year’s Call for Nominations.
The nomination process allowed developers to identify areas offering the highest likelihood of successful delivery, improving alignment between storage potential and emerging capture projects. Five of the newly opened areas sit offshore Scotland, with the remaining nine positioned off England’s east coast.
All locations were selected following extensive consultation with Crown Estate Scotland and The Crown Estate, both of which play a critical role in seabed leasing. While the NSTA awards carbon storage licenses, developers must also secure a seabed agreement from the relevant Crown Estate body before progressing to full project development.
A pathway toward early 2027 awards and a growing UK storage pipeline
The licensing round will remain open until March 24, 2026, after which the NSTA will assess applications with the aim of granting licenses in early 2027.
According to NSTA Chief Executive Stuart Payne, the round reflects the UK Government’s “total support for carbon storage and the jobs and investment it can create,” underscoring the role of CCS in delivering the energy transition.
The UK’s first carbon storage licensing round, held in 2023, resulted in 21 awarded licenses, several of which have since advanced to the permitting stage.
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Key milestones include the issuance of storage permits to the Endurance and HyNet projects, each capable of storing around 100 million tons of CO2. Endurance received its permit in December 2024, while HyNet secured three permits in April 2025, allowing both developments to proceed toward first injection.
The second licensing round is expected to significantly expand the UK’s future storage capacity, supporting industrial decarbonization, hydrogen production, and large-scale carbon removals in the decades ahead.
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