UK Receives Bids for Over 2 Million Acres in North Sea Carbon Storage Licensing Round

The North Sea Transition Authority (NSTA) has received applications covering more than 2 million acres of seabed following the closure of the UK's second carbon storage licensing round on 24 March. This development underscores the growing momentum in the UK's carbon capture and storage (CCS) sector, with existing projects advancing towards initial CO₂ injection.

Launched in December 2025, the second licensing round aims to build upon the success of the four storage permits previously awarded in the UK. Notably, the Endurance project off the coast of Teesside and the HyNet project in Liverpool Bay have each been granted storage permits, enabling them to target first CO₂ injection by 2028. The UK government anticipates that these two sites will create 4,000 jobs in the northwest and northeast of England and, in the long term, support 50,000 jobs across the country.

Andy Brooks, NSTA's director of new ventures, commented: > "The growth of the carbon storage sector is great news for UK jobs, growth, skills, and the supply chain. The UK holds a unique position in developing offshore energy in general, including carbon storage. As we transition, we benefit from decades of experience in the North Sea, commercial know-how, optimal geological conditions, and spatial coordination."

In addition to the licensing round, the NSTA has initiated several measures to support the industry, including publishing maps highlighting areas of future carbon storage appraisal potential and issuing stewardship expectations to assist licensees. The authority will now review the applications received and collaborate with applicants and other stakeholders before deciding on the awarding of licenses.