Environment / More sites to the north east of Shetland targeted for carbon storage
THREE offshore sites to the north east of Shetland are up for grabs in a second carbon storage licensing round.
Developers can now submit applications for the exploration and appraisal of a total of 14 sites in Scottish and English waters which could provide two gigatonnes of additional CO2 storage capacity.
These areas were chosen by government agency North Sea Transition Authority (NSTA) following consultation with the Crown Estate.
Carbon capture and storage involves taking CO2 emissions from industrial processes, transporting it via a ship or pipeline and storing it underground offshore.
Sullom Voe Terminal (SVT) operator EnQuest was successful in the first licensing round in 2023 for a couple of areas to the east of Shetland.
These are in the Magnus and Thistle fields to the north east of Shetland, and are connected to SVT by pipeline.
CO2 captured by emitters elsewhere would be transported via ship to the terminal, from where it would be sent via the repurposed pipelines for permanent storage in the depleted oil and gas reservoirs.
It is one element of plans from EnQuest to revamp SVT in the transition away from fossil fuels, with e-fuel production also on the cards.
Regarding the second licensing round, NSTA chief executive Stuart Payne said: “The UK Government has signalled its total support for carbon storage and the jobs and investment it can create as a vital part of the energy transition.
“We are proud to be launching this licensing round, working in collaboration with other authorities especially Crown Estate Scotland and the Crown Estate to support this vital industry in the next stage of its development.”
Ronan O’Hara, chief executive of Crown Estate Scotland, said it was important that “deployment is co-ordinated to make the most of Scotland’s unique geological storage and to provide new economic opportunities for Scotland and the wider UK”.
The second licensing round has also been welcomed by the Scottish Government.
Energy secretary Gillian Martin said carbon capture and storage will be “vital to us achieving our climate targets”.
“I welcome the launch of the second carbon storage licensing round which builds on the existing licenses which have been issued off the Aberdeenshire coast and north-east of Shetland,” she said.
“The North Sea is a crucial asset in Scotland’s energy transition thanks to its existing infrastructure, skilled workforce, expertise and supply chain – and provides opportunities to generate significant investment, create new jobs and transform industry in Scotland.”
The licensing round will run until Tuesday 24 March, after which applications will be reviewed with a view to awarding licences in early 2027.
Despite gaining licences in the first round, EnQuest recently expressed disappoint at the UK Government’s strategy for providing investment in carbon capture and storage projects.
The company warned in its recent half-year results that the UK could “cede the opportunity” to lead development in the field, despite possessing around 25 per cent of Europe’s total carbon storage capacity.
In response to these concerns, the UK Government said its funding will help firms to “lead the world in a ground-breaking clean energy technology”.
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