The North Sea Transition Authority (NSTA) plans to open its second carbon storage licensing round in December, marking another key step in the UK’s effort to scale up carbon capture and storage (CCS) capacity across the continental shelf.
The move follows the conclusion of the first CO2 storage licensing round in September 2023, in which 14 companies were awarded permits from 26 applications.
The NSTA, which regulates offshore energy transition and the development of carbon storage sites, said it aims to sustain the momentum generated by last year’s strong industry interest.
Speaking at the Carbon Capture and Storage Association (CCSA) annual conference in Westminster, CCSA Chief Executive Olivia Powis described the current moment as “defining” for the UK’s carbon management sector.
“We’re moving from ambition to action,” Powis said. “Projects are breaking ground, investments are flowing, and jobs are being created across our industrial regions. CCUS isn’t just about cutting emissions; it’s about securing the future of UK industry, driving regional growth and positioning Britain as a global leader in clean technologies.”
Building the Next Phase of UK CCS Capacity
The upcoming round is expected to award new storage acreage to developers through a competitive leasing process beginning in December or early 2026.
The NSTA’s approach will mirror its earlier process, which aimed to identify and license strategic sites suitable for long-term carbon storage under the UK Continental Shelf.
In May 2025, the regulator invited nominations and expressions of interest for new carbon storage areas – an early step in defining the portfolio of potential sites.
Relevant: CCUS 2025: Collaboration Over Competition Defines UK’s Carbon Capture Push
These include areas that could support existing industrial clusters such as HyNet, located in the North West of England and North Wales, which was approved under the Track-1 CCS cluster sequencing round initiated by the former UK government.
The NSTA said expanding carbon storage licensing rounds is essential to meet national net-zero goals, enhance energy transition infrastructure, and enable industries to decarbonize at scale.
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