The North Sea Transition Authority (NSTA) has recently marked a significant milestone in the realm of carbon storage, receiving bids from developers for over 2 million acres of North Sea seabed. This initiative is part of the NSTA’s second carbon storage licensing round, underscoring the UK’s commitment to combat climate change through innovative solutions.
This licensing round, which was opened in December 2025, offers five locations offshore Scotland and nine offshore England for exploration and appraisal. The total potential of these sites includes an impressive capacity for up to 2 gigatons of additional CO2 storage, which plays a critical role in the UK’s ambition to reduce greenhouse gas emissions.
The areas identified for this purpose fall into two primary categories: depleted hydrocarbon fields and saline aquifer sites. The NSTA has handpicked the depleted fields, while the saline aquifers were pinpointed following a Call for Nominations. This Call allowed industry partners to suggest locations they believed had a higher likelihood of successful project execution. Such a collaborative approach highlights the importance of industry feedback in the search for effective carbon storage solutions.
With the closure of this latest licensing round on March 24, the NSTA is now tasked with reviewing the numerous bids received. This process will involve collaboration with the applicants and consultation with various stakeholders, including organizations like The Crown Estate and Crown Estate Scotland. This ensures that any awarded areas are not only suitable for carbon storage but are also well-coordinated with other marine sectors, thereby promoting a balanced and sustainable approach to the utilization of marine resources.
As Andy Brooks, NSTA Director of New Ventures, aptly notes, “The growth of the carbon storage sector is great news for UK jobs, growth, skills, and the supply chain.” The mere existence of this licensing round is a testament to the UK’s unique position as a leader in offshore energy development, aided by years of experience, geological advantages, and a well-coordinated spatial planning process.
The inaugural carbon storage licensing round took place in September 2023, resulting in the award of 21 carbon storage licenses. Following this, the NSTA granted the first storage permits to two key projects, namely Endurance and HyNet, which have now taken substantial steps towards their first CO2 injections.
Located off the coast of Teesside, the Endurance site possesses the potential to store an impressive 100 million tons of CO2. This project, having received its permit in December 2024, is moving forward with ambitious plans. Similarly, HyNet, located in Liverpool Bay and capable of storing an equivalent amount over 25 years, obtained three permits by April 2025. Both projects are aiming for their first injections by 2028, signifying a monumental step towards bolstering the UK’s carbon capture capabilities.
Recent developments also indicate that Endurance has commenced drilling for an appraisal well, a crucial step that follows a previously initiated well in the Hewett field, part of the Southern North Sea by the Bacton CCS project. This drilling work is critical in assessing the geologic formations and the integrity of the storage sites, ensuring that they can safely and effectively store significant amounts of CO2.
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