Supply Chain Mechanism for Carbon Capture and Storage on the Seabed

Tender description

This Invitation to Tender ("ITT") initiates a call to appoint a consultancy to provide advice to Crown Estate Scotland (“CES”) on a supply chain requirement to be incorporated to seabed agreements for Carbon Capture and Storage (“CCS”). This work will be delivered by a written report, preceded by a workshop during which the findings will be presented. Three deliverables will be achieved in these estimated timescales: (1) Draft report: 8 weeks after kick-off meeting (2) Report presented to CES: 2 weeks after (1) (3) Final Report: 2 week after (2) Lot 1: Background 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 regulator of licences for offshore carbon dioxide (“CO2”) 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. In alignment with the Energy Act 2008, the licence holders are required to obtain seabed agreements from CES. https://www.nstauthority.co.uk/regulatory-information/licensing-and-consents/carbon-storage/ Those licence holders who meet CES’ criteria will be granted exclusive CCS development rights over their proposed storage site. These rights will be provided by an Exclusivity Agreement (or similar) and will allow licence holders to appraise their sites and ultimately apply to NSTA for a Storage Permit. Once a site has been fully appraised, Storage Permit secured, and any other conditions included in the Exclusivity Agreement have been met, a Lease may be awarded for construction and operation of a CCS project. 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 in a sustainable manner, stimulating the local supply chain and supporting the Just Transition. Objective of the Tender CES is seeking to appoint a consultancy to evaluate the applicability of the Supply Chain Development Statement (“SCDS”)previously applied in offshore wind leasing, for the CCS sector. Additionally, a supply chain mechanism alternative to SCDS shall be proposed and evaluated by the consultant. Specification – Scope of Work CES’ interests are focused on the transport and storage elements of offshore CCS projects. Rent will be payable to CES for pipelines and for the seabed area under Lease, beyond 12 nautical miles from shore. To assist potential bidders in preparing their response to this ITT, an example transport and storage shall be modelled: