U.K. Reveals Undersea CO2 Storage Plans

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The future storage of captured carbon dioxide emissions from power plants in the U.K. took an important step forward this week, as the government outlined how it will license CO2 storage under the seabed.

The Crown Estate and the Department of Energy and Climate Change (DECC) will work closely with developers to license suitable areas for carbon storage. The Crown Estate will issue leases for suitable locations for potential storage under the seabed, while DECC will be responsible for issuing the carbon-storage licenses at these locations.

The news comes in the same week that the U.K. and Norway cemented their existing energy and carbon storage endeavours, issuing a joint ministerial statement regarding their intention to develop carbon capture and storage (CCS) technology, as well as other energy projects. For additional information, see August 31, 2010, article - Norway and U.K. Create Energy Pact. Last June, the U.K. and Norway announced plans to study how the North Sea could be used for storing captured CO2. For additional information, see June 2, 2009, article - U.K. and Norway Plan Carbon-Dioxide Storage in North Sea.

According to DECC, CCS involves capturing carbon dioxide from power stations and transporting it to geological sites where it will "remain safely stored and permanently isolated from the atmosphere." DECC believes that CCS can reduce the CO2 emissions from fossil-fuel power stations by up to 90% and has refused to allow any new fossil-fuel power stations to be built in the U.K. without a working CCS process. For additional information, see April 29, 2009, article - U.K. Cracks Down on Coal-Fired Plants.

"Carbon capture and storage is essential for mitigating climate change while maintaining energy security," said Charles Hendry, the U.K.'s Minister of State for Energy, on the publication of the government's response to the consultation. "There is enough potential under the North Sea to store more than 100 years worth of carbon dioxide emissions from the U.K.'s power fleet, and we need to make the most of that."

DECC will now put forward the regulations in Parliament in order to comply with European rules on the underground storage of carbon dioxide. They will come into effect on October 1. The regulations will apply to all offshore areas within U.K.'s jurisdiction, except Scottish territorial waters. The Scottish government will make separate CCS regulations.

In September 2009, U.K. coal producer Powerfuel plc (Stainforth, England) signed a preliminary agreement with gas field owner ConocoPhilips (NYSE:COP) (Houston, Texas) to store carbon in the depleted Viking gas field off the east coast of England. For additional information, see article from September 12, 2009 - U.K. Carbon-Capture Project to Use Deep-Sea Storage.

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