Carbon capture and storage

We are working with developers to identify how carbon storage beneath the seabed can help the UK meet its targets on carbon emissions.  

Our role

We manage the UK seabed out to the 12 nautical mile territorial sea limit and, under the 2008 Energy Act, hold the rights for carbon dioxide (CO2) storage within the Gas Importation and Storage Zone (GISZ), which extends out to the continental shelf.

CO2 is emitted into the atmosphere whenever fossil fuels are burned. One opportunity to help prevent CO2 building up in the atmosphere - with potentially adverse environmental consequences - is to 'capture' the CO2, and then permanently dispose of, or 'store', it deep underground.

In order to undertake a carbon storage project on the continental shelf in the current DECC delivery programme, a business would need (i) government funding assistance , (ii) a grant of property rights from The Crown Estate and (iii) a carbon storage licence and permit from DECC.

The Crown Estate awards rights for CO2 storage through three documents: an Agreement for Lease (AfL), a lease and a pipeline lease (if necessary). The AfL grants to the holder a time limited exclusive option to proceed through to a pre-agreed lease once a number of conditions have been met, including obtaining a storage permit from DECC.

The holder of a carbon storage AfL or lease may not interfere with the rights of petroleum licence holders operating in the same area of the continental shelf. Therefore, in some situations, holders of a carbon storage AfL or lease and petroleum licence holders in the same area of the continental shelf may need to reach agreement on how their rights can be exercised consistently with each other.

The Crown Estate understands from the carbon storage industry that the AfL gives the AfL-holder a basis for negotiations with holders of overlapping petroleum licences before any carbon storage lease is actually granted. This means that agreement with the petroleum licence holder may be reached earlier and so may enable the carbon storage project to advance more quickly once a lease is granted.

Notices

Shell: Goldeneye Field - CO2 storage

The Crown Estate has received a request from Shell U.K. Limited (Shell) to enter into an Agreement for Lease (AfL) for the storage of carbon dioxide (CO2) in the Goldeneye field in connection with the Peterhead CCS project. The request is in order for Shell to take forward additional studies to support a submission for the DECC CCS commercialisation programme. The AfL recognises the considerable work that has already been undertaken at this site in appraising its effectiveness as a potential store for CO2. Shell is the existing operator of the field by virtue of Petroleum licence (P257, P592, P732 & P739) and the AfL is intended to provide some security over the site whilst the commercialisationprocess is being undertaken. The AfL will in no way affect the DECC competition process or outcome of the NER process which is being independently and separately assessed by the European Investment Bank and the European Commission.

An application may also be made to the Secretary of State for a CO2 storage licence.

The Crown Estate intends to grant an AfL to Shell for the Goldeneye field and on doing so The Crown Estate will not be in a position to grant any other person an AfL for this site. If you would like to make any observations in relation to this proposed grant, please email, by 15 July 2012:

Dr Ward Goldthorpe 

CO2DeepStore: Aspen CO2 Storage Area - Central North Sea

The Crown Estate has received a request from Petrofac subsidiary, CO2DeepStore (CO2DS) to enter into an Agreement for Lease (AfL) for the geological storage of carbon dioxide (CO2) in a site in the Central North Sea, approximately 80 miles off the Aberdeenshire Coast. The proposed site, known as Aspen, partially underlays petroleum licence blocks 13/30 and 14/26. The AfL would allow CO2DS to complete additional studies to support a submission for the DECC CCS Commercialisation Programme.

The grant of the AfL will recognise the considerable work that has already been undertaken at this site in selecting its effectiveness as a potential store for CO2. It also recognises the work that is still required to assess the saline formation. The AfL will in no way affect the DECC competition process.

An application may also be made to the Secretary of State for a CO2 Storage Licence.

The Crown Estate intends to grant an AfL for the Aspen Area and on so doing The Crown Estate will not be in a position to grant any other person an AfL for this site. If you would like to make any observations in relation to this proposed grant, please email, by 4 June 2012:

Dr Ward Goldthorpe

CO2DeepStore: Plum CO2 Storage Area - East Irish Sea

The Crown Estate has received a request from Petrofac subsidiary, CO2DeepStore (CO2DS), on behalf of the Storage Joint Venture (CO2DS/ Peel Energy CCS (PECCS)), to enter into an Agreement for Lease (AfL) for the geological storage of carbon dioxide (CO2). The site, known as Plum, is located in the East Irish Sea, approximately 15 miles offshore from the Liverpool coast and partially underlays petroleum licence blocks 110/13 and 110/14. The AfL would allow CO2DS to complete additional studies to support a submission for the DECC CCS Commercialisation Programme.

The grant of the AfL will recognise the considerable work that has already been undertaken at this site in selecting its effectiveness as a potential store for CO2, as laid out in the NER300 bid that was submitted to the EIB in February 2011. It also recognises the work that is still required to assess the depleted gas reservoir. The AfL will in no way affect the DECC competition process.

An application may also be made to the Secretary of State for a CO2 Storage Licence.

The Crown Estate intends to grant an AfL for the Plum Area and on so doing The Crown Estate will not be in a position to grant any other person an AfL for this site. If you would like to make any observations in relation to this proposed grant, please email, by 4 June 2012:

Dr Ward Goldthorpe