UK Grants Licenses to Oil Companies for Carbon Storage in North Sea

Quincy Jon, Tech Times 15 September 2023, 01:09 pm

The UK government has given authorization for several oil companies to store carbon emissions in depleted oil and gas areas beneath the North Sea.

With an emphasis on capturing carbon dioxide emissions from heavy industry, over 20 North Sea licenses spanning a region similar to Yorkshire have been given to 14 businesses, including Shell, ENI, and Harbour Energy.

Industry regulator North Sea Transition Authority (NSTA) estimates that these enterprises may store 30 million metric tons of CO2 per year by 2030, equivalent to 10% of UK emissions, according to The Guardian.

More Licensing Rounds Expected

This initiative is part of the UK government's carbon capture and storage (CCS) business strategy in addressing climate change. The CEO of NSTA, Stuart Payne, stressed the crucial role carbon storage will play in the energy revolution, helping to support energy hubs and hydrogen generation.

The NSTA predicts it may take up to 100 storage licenses to reach net-zero emissions. As the plans for the four CCS industrial centers around the UK go further, more licensing rounds are anticipated.

Lord Callanan, Minister for Energy Efficiency and Green Finance, praised the permits as a crucial step toward making the UK a pioneer in CCS systems. As part of its net-zero ambitions, the UK government has pledged £20 billion ($24.7 billion) over the next two decades to assist in the development of carbon capture, use, and storage (CCUS).

UK Leading the Way in Promoting Clean Energy

The Carbon Capture and Storage Association hailed the permits as a step toward widespread CCS deployment, allowing the UK to store roughly 10% of its greenhouse gas emissions and creating a cleaner, more sustainable future.

Offshore Energies UK's Mike Tholen, Director of Sustainability and Policy, said that the UK's oil and gas sector has the necessary knowledge, abilities, and people to turn the initiative into a British victory.

"If we get this right, it could not only significantly reduce the UK's carbon footprint but also position us as world leaders in the low carbon space, creating opportunities for UK people and businesses and playing on our industrial strengths," Tholen said, as quoted by Offshore.

Despite the promising future of CCS, experts have warned that the annual financing of £1 billion ($1.24 billion) may not be enough to complete the large-scale projects required to decarbonize the UK's industrial centers, according to Business Green. For these initiatives to advance effectively, developers have underlined the need to establish a legislative and subsidy environment.

The government's use of CCS is a costly diversion from better energy sources, say environmental organizations. However, the independent UK Climate Advisory Committee on Climate Change stated that CCS technology is essential to reach government targets.