UK Regulator Issues CCS Licence

UK upstream regulator, the Oil and Gas Authority (OGA), has awarded its first carbon dioxide capture and storage (CCS) appraisal licence as an independent regulator, it said December 6.

The recipient is Pale Blue Dot Energy (PBD) for its Acorn CCS Project. The project seeks to re-use existing oil and gas infrastructure for transporting and storing carbon; and to repurpose or rebuild an existing CO2 capture facility based at the St Fergus beach terminal, Scotland.

PBD CEO Alan James said the CCS Licence "is a really important step to help us develop one of the UK’s first CO2 transportation and storage networks. Through Acorn CCS Scotland can use legacy oil and gas assets to deliver environmental benefits, unlocking CO2 transportation and storage solutions for other CCUS projects along the east coast of the UK."

OGA's CEO, Andy Samuel, said he welcomed the government’s recently-announced Action Plan to develop the UK’s first carbon capture, use and storage projects and the OGA is continuing its close work with the government and others to identify UK offshore infrastructure that could be re-used. He added: "We are also looking closely where else we can play a role, including the role of gas as a transition fuel; reducing emissions in flaring and venting; considering CO2 opportunities for enhanced oil recovery; and where suitable bringing attention to energy integration with renewables, including gas-to-wire."

The licence has an initial four-year term and allows PBD to look for a site for CO2 storage.  Then it needs to apply for a permit before injection can start.