A new carbon dioxide transport and storage license may soon be granted to the UK, as it was recently revealed that the UK Government has issued a notice of proposal around this. This license is intended for Liverpool Bay CCS Limited and Net Zero North Sea Storage Limited.

The purpose and aim behind this license is for it to provide the Company, along with its investors, with long-term revenue certainty. This will go towards establishing and potentially scaling up carbon dioxide transport and storage infrastructure. Another aim of this project is to facilitate the deployment of a carbon dioxide transport and storage infrastructure.

It this license is granted, it will then authorise the company with the ability to operate sites for the disposal of carbon dioxide through the use of geological storage, whilst also providing a service of transporting carbon dioxide through pipes to such sites. Apart from this, the granting of a carbon storage license is subject to a different process.

Altogether, the benefit of providing this license, would provide the company with the correct framework to enable them to receive an ‘Allowed Revenue’ that the company would the be able to recover through the use of system charges which would be paid by users of the transport and storage network.

Currently the final decision around this license has not yet been made, as it is still subject to approval by the Secretary of State. The subject areas yet to be addressed are sufficient funding arrangements, subsidy control compliance and value for money assessments. Alongside this, the completion of this agreement also requires the satisfaction of various conditions precedent, which includes the necessary permits and consents being in place.