Equinor and BP have been awarded carbon storage licences in the southern North Sea, a key step in the Net Zero ambitions for the Humber and Teesside.
The pair are part of the Northern Endurance Partnership, the umbrella organisation bringing forward the East Coast Cluster CCS proposal - which includes both Zero Carbon Humber and Net Zero Teesside.
Uniting both regions offshore, it has already been named as the government’s forerunner in the cluster sequencing for the deployment of the technology, seen as vital to decarbonise existing heavy industry.
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A total of 27 million tonnes of CO2 have been identified for capture and storage - with potential to ship in from other clusters too.
Andy Lane, Northern Endurance Partnership managing director, said: “The North Sea Transition Authority’s decision to grant BP and Equinor carbon storage licences is great news for the Humber, Teesside and the East Coast Cluster, which represents almost 50 per cent of the UK’s industrial cluster CO2 emissions.
“This is another important milestone for the East Coast Cluster which will capture and safely store CO2 emissions from a wide range of industrial and power projects, protect and create thousands of jobs and help establish the Teesside and Humber regions as a globally-competitive climate-friendly hub for industry and innovation.”
An appraisal term of eight years had been agreed. Work programmes require the licensees to show progress in achieving milestones, such as performing seismic surveys of the four proposed storage sites and drilling wells to acquire data before applying for a storage permit.
The sites are located around 70km - 43 miles - off the East Yorkshire coast. Combined with the existing licence granted for the Endurance carbon store, they could eventually contribute to the storage of up to 23 Mtpa of CO2 around 1,400 m beneath the seabed.
The government’s target for Carbon Capture, Usage and Storage is to reach 20 to 30 Mtpa by 2030, and over 50 Mtpa by 2035.
Energy and Climate Change Minister, Greg Hands, said: “Carbon capture provides a key opportunity for the future of the North Sea, as well as UK industries. We are determined to make the UK a world-leader in this developing market and these licences represent an important contribution to making that a reality.”
NSTA - until March the Oil and Gas Authority - is now stewarding six licences on the UK continental shelf, having awarded five licences since 2018 and agreed a transfer of a sixth. Immingham-focused South Bank scheme V Net Zero was allocated in October last year.
Current project estimates indicate that earliest injection from a CS project could come as soon as 2025 given the progress already seen across it, East Coast Cluster and Hynet in the North West.
Scott Robertson, NSTA director of operations, said: “The NSTA is pleased to award these licences which have the potential to make a significant contribution towards the government’s net zero target.
“Carbon storage and low carbon gas production, alongside growth in hydrogen and renewable energy, are all key elements of the energy transition and a crucial part in tackling the climate emergency, but we know that time is short and real action must be taken rapidly, so we will work closely with BP and Equinor to ensure that milestones on this project are met, as we do with other projects across the North Sea.”
Equinor is also the lead partner in Zero Carbon Humber, with plans for hydrogen production at Saltend, kickstarting the regional dual pipeline project to supply the low carbon fuel while collecting the carbon.
Grete Tveit, senior vice president for low carbon solutions with the Norwegian multinational, said: “We’re delighted these licences were awarded to Equinor and BP by the North Sea Transition Authority. This is a major milestone for the East Coast Cluster project which will make a tangible impact in the UK’s climate change ambitions.
“Delivered with our partners in the Humber, Teesside and the Northern Endurance Partnership, the East Coast Cluster will not only establish the UK as a leader in the energy transition, but will also secure and create tens of thousands of jobs and bring investment to local communities.”
