Carbon Storage Developers Complete Applications in UK’s Second CCS Round

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Carbon Storage Developers Complete Applications in UK’s Second CCS Round

Sustainibility

UK Expands Carbon Storage Push with Strong Response to Second CCS Licensing Round

The UK is accelerating its carbon capture and storage (CCS) ambitions, with strong industry participation in its latest offshore licensing round. For maritime and offshore stakeholders, this signals a growing pipeline of subsea infrastructure, new vessel demand, and long-term energy transition opportunities.

Industry Eyes North Sea Storage Potential

The UK’s North Sea Transition Authority (NSTA) has received applications covering more than two million acres of seabed in its second CCS licensing round, which closed on March 24. Launched in December 2025, the round builds on momentum from the first licensing phase in 2023, where 21 licenses were awarded and early-stage injection testing is already underway.

This latest round offered 14 offshore locations, with the potential to unlock up to 2 gigatonnes of additional CO₂ storage capacity—positioning the UK as a key player in Europe’s carbon management network.

First Projects Target 2028 Start-Up

The regulator points to steady progress across the sector, with initial CCS projects expected to come online by 2028. Two Track 1 developments are currently leading the race toward early operations, reflecting both regulatory backing and industry readiness. Among the most advanced is the Northern Endurance Partnership (NEP), a major CO₂ transport and storage network serving industrial clusters in Teesside and the Humber. Backed by BP, Equinor, and TotalEnergies, the project recently moved into appraisal drilling and secured a seabed lease—marking a key step toward developing what is expected to be the UK’s largest commercial-scale CO₂ storage system. Located roughly 90 miles offshore in the southern North Sea, the site—anchored in a saline aquifer—offers access to around 1 billion tonnes of storage capacity.

Pipeline Networks and Depleted Fields in Focus

The HyNet Alliance is also advancing, with three storage permits secured. Its Liverpool Bay CCS project, led by Eni, began construction in 2025. The development combines new and repurposed pipelines to transport captured CO₂ emissions from industrial sources to offshore storage sites in depleted reservoirs.

Elsewhere, Perenco UK is progressing the Poseidon Project in the Leman gas field. With an estimated capacity of up to 40 million tonnes per annum, the project began testing in early 2025 and is targeting operational status by 2029.

Another key development, the Bacton CCS project, is being explored in the Hewett field off the Norfolk coast. Proposed by Eni, the site is designed to handle emissions from the Thames Estuary region, with test drilling already underway since late 2025.

Regulation, Coordination, and What Comes Next

To support the growing CCS ecosystem, the NSTA has introduced mapping tools to identify future storage zones and issued stewardship guidelines for license holders. The authority will now evaluate submitted bids in coordination with stakeholders such as The Crown Estate and Crown Estate Scotland, alongside other marine users.

Final license awards from this round are expected in early 2027.

Why This Matters

For shipowners: CCS growth will drive demand for CO₂ carriers, offshore support vessels, and subsea installation fleets
For offshore operators: Repurposing depleted fields creates new revenue streams from legacy oil and gas assets
For maritime professionals: Expanding CCS hubs will reshape port operations, logistics chains, and offshore traffic patterns
For the energy transition: Large-scale storage is critical to decarbonising heavy industry—and shipping will be central to moving captured CO₂

The UK’s second CCS round shows that carbon storage is moving from policy to infrastructure. For maritime stakeholders, it opens a new offshore market built on CO₂ logistics, not hydrocarbons.

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