Provision Of Carbon Capture and Storage Evaluation Criteria Design.

Description

CES is responsible for leasing carbon dioxide storage areas of seabed in Scottish waters within the Gas Storage and Importation Zone. The North Sea Transition Authority (“NSTA”) are the licensing and permitting authority for offshore carbon dioxide appraisal and storage licences in UK waters (excluding projects that are wholly within Scottish Territorial Waters (which is 12nm from the shoreline in Scotland)). NSTA administered their first carbon storage licensing round in 2023, resulting in licences being offered for six areas in Scottish waters, to the ‘Round 1 Licensees’. Lot 1: CES is responsible for leasing carbon dioxide storage areas of seabed in Scottish waters within the Gas Storage and Importation Zone. The North Sea Transition Authority (“NSTA”) are the licensing and permitting authority for offshore carbon dioxide appraisal and storage licences in UK waters (excluding projects that are wholly within Scottish Territorial Waters (which is 12nm from the shoreline in Scotland)). NSTA administered their first carbon storage licensing round in 2023, resulting in licences being offered for six areas in Scottish waters, to the ‘Round 1 Licensees’. CES are currently administering in parallel a due diligence process with the Round 1 Licensees. The Licensees who successfully complete this process will be granted exclusive CCS storage appraisal rights over their licence area, via an Appraisal Agreement providing the exclusive right to apply to CES for an Option Agreement when appraisal is complete, and application for a Storage Permit from the NSTA is submitted. The Option Agreement will provide a pathway to Lease, which will be granted when pre-conditions are met; one of which will be the confirmation of a Storage Permit from the NSTA. The Lease is required before project construction begins. Under a Lease, rent is due to be paid to CES. CES’ revenues are paid to the Scottish Government. CCS will be needed for Scotland to meet its climate targets and CES is committed to enabling the growth of the CCS sector with additional leasing. We are working in partnership with NSTA to deliver aligned licensing and leasing activities. We require to develop a set of criteria that ensures applicants will make acceptably efficient use of the seabed and are likely to result in operating CCS projects.