Carbon capture and storage (CCS) technology captures CO? emissions from industrial sources, such as gas-fired power stations, before they enter the atmosphere. The captured carbon dioxide is then transported and permanently stored in depleted oil and gas reservoirs or suitable saline aquifer formations beneath the seabed.
Despite its technical maturity, the commercial development of CCS projects remains challenging due to the current variation in carbon pricing mechanisms across regions. As a result, most projects continue to require government financial support to proceed.
In 2023, the UK awarded 21 carbon capture licences in its first offshore licensing round. To date, only two projects — the Endurance store in the central North Sea and the HyNet North West cluster — have progressed to the stage of receiving final permits for CO? injection. Both initiatives were already in development before the 2023 round.
The new application window will remain open until 24 March 2026, the NSTA stated. Successful applicants are expected to be notified and licences awarded in early 2027.
The launch forms part of the UK’s broader strategy to establish a domestic carbon storage industry capable of supporting net-zero targets while preserving industrial activity and jobs in energy-intensive regions.
