Britain's North Sea Transition Authority (NSTA) on Thursday said it has awarded energy firms Equinor and BP two carbon storage licences on the UK Continental Shelf off the coast of Humberside. - Reuters

Carbon capture and storage (CCS) transports CO2 from where it is emitted and stores it, usually underground, to prevent its release into the atmosphere.

The technology is expected to help Britain meet its 2050 net zero carbon emissions target, the government has said, with the UK aiming to store 20-30 million tonnes of CO2 emissions per year by 2030 and over 50 million tonnes by 2035.

The licences are valid for eight years, during which the firms need to achieve milestones such as performing seismic surveys of the four proposed storage sites and drilling wells to acquire data, the NSTA said in a statement.   

Combined with existing licences nearby held by the Northern Endurance Partnership, which includes Equinor and BP, the licences have the potential to allow the storage of up to 23 million tonnes per year of carbon dioxide, it added.

Including the latest awards, there are now six storage licences active in the UK, with the NSTA estimating first injections could come as soon as 2025.