A major carbon storage project has been given the green light – turbocharging the UK’s drive to unlock investment, jobs and economic growth and reach net zero emissions by 2050.

The North Sea Transition Authority (NSTA) has awarded 3 carbon storage permits to Eni for Liverpool Bay CCS, the CO2 transportation and storage system which will serve the HyNet industrial cluster. 

Phase one of HyNet is designed to store 109 million tonnes of CO2 in the East Irish Sea, 20 miles off the coast of Liverpool, over 25 years – the equivalent of taking 60.1 million cars off the road for a year.

The system, which will take CO2 from large-scale industrial emitters in north-west England and north Wales, will unlock about £2 billion worth of supply chain contracts and create 2,000 construction jobs.

The permits let Eni start preparing the stores for the initial injection of 4.5 million tonnes of CO2 per year starting as soon as mid-2028. The permits were issued alongside the economic licence awarded by the Department for Energy Security and Net Zero.

Carbon storage is a vital cog in the UK’s clean energy future and the NSTA is playing a major role in ensuring the sector reaches its full potential. The NSTA awarded the nation’s 1st ever carbon storage permit to the Northern Endurance Partnership (NEP) for a site in the Southern North Sea in December 2024. The regulator also launched the world’s first ever large-scale carbon storage licensing round in 2022, resulting in 21 awards the following year.  

It is estimated that the UK will need to appraise around 100 stores to hit its net zero target. The NSTA has kept up the momentum with the permit awards for HyNet, which followed exhaustive technical work to be satisfied that there is no significant risk of leakage from any of the offshore storage sites.

HyNet will be served by a combination of new infrastructure and existing infrastructure which will be repurposed for carbon transportation and storage. In total, more than 90 miles of offshore and onshore pipeline will be given a new lease of life, delivering substantial cost savings and cutting the environmental impact associated with the construction, transportation and installation of new kit.

A new platform will be installed at the Douglas field to receive CO2 from the Point of Ayr Gas Terminal in Flintshire, Wales. From there, the CO2 will be transported onward to the Hamilton, Hamilton North and Lennox depleted oil and gas reservoirs operated by Eni in Liverpool Bay, for permanent storage.

Stuart Payne, NSTA Chief Executive, said:- “These permits for HyNet, following hot on the heels of the one awarded for Endurance, are another significant milestone that puts the tremendous opportunities of the energy transition within the UK’s grasp. We’ve now got two major carbon storage projects with real investment and real jobs for our expert supply chain to get its teeth into. I’m extremely proud of the leadership NSTA colleagues have shown and the work they’ve put in, alongside developers, government and other regulators, to turn ambitions for carbon storage into reality.”

Energy Secretary Ed Miliband said:- “We are keeping our promise to launch a whole new clean energy industry for our country, building the clean energy infrastructure Britain needs, supporting highly skilled jobs and revitalising our industrial communities. Thanks to the North Sea, we have 1 of the greatest carbon storage potentials of any country. With the NSTA giving the green light to these permits, we are creating thousands of jobs, delivering growth and prioritising Britain’s energy security in the face of global insecurity.”

Carbon storage facilities have been operating across the world for decades. The process involves capturing emissions before they reach the atmosphere and transporting them to depleted reservoirs or aquifers for permanent storage.

The Climate Change Committee, which advises the UK government on emissions reduction policies and targets, recently described carbon storage as essential, adding there is no route to net zero without it.

As well as playing an important role in decarbonising the economy, the carbon storage industry will provide a bridge to help oil and gas workers transfer their skills to clean-energy jobs, supporting communities and anchoring the supply chain in the UK.

The UK government gave the industry a huge vote of confidence in October 2024 when it committed up to £21.7 billion to support the development of HyNet and NEP. It said the industry could contribute around £5 billion per year of gross value to the UK economy by 2050 and create 50,000 jobs long-term.

The UK has the resources to become a global centre of excellence for carbon storage, with up to 78GT storage potential in the UK continental shelf, enough to store centuries worth of CO2.