UK issues carbon storage permits for CCS project in Liverpool Bay

The UK’s North Sea Transition Authority (NSTA) has issued three carbon storage permits to Italy’s oil & gas giant Eni for the HyNet carbon capture and storage (CCS) project in Liverpool Bay, enabling the development of a 109 million tonne CO2 storage system over 25 years.

According to NSTA, this marks the second such approval issued by the regulator in under five months, following the December 2024 permit for the Endurance site in the Southern North Sea.

The HyNet permits cover CO2 transport and storage infrastructure for industrial emitters across north-west England and north Wales. The system will store CO2 in depleted oil and gas fields in the East Irish Sea, approximately 20 miles offshore from Liverpool.

The NSTA said the permits allow Eni to begin preparations for injecting up to 4.5 million tonnes of CO2 per year, starting as soon as mid-2028. The permits were awarded alongside an economic licence issued by the Department for Energy Security and Net Zero (DESNZ).

Just yesterday, April 24, Eni reported reaching financial close with the UK Government for this CCS project, now free to move to the construction phase.

“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,” said Stuart Payne, NSTA Chief Executive.

“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.”

HyNet is expected to create 2,000 construction jobs and unlock £2 billion (approximately $2.66 billion) in supply chain contracts. The system will utilise more than 90 miles of repurposed offshore and onshore pipelines to minimise cost and construction impact.

A new platform will be installed at the Douglas field to receive CO2 from the Point of Ayr gas terminal in Flintshire. From there, it will be transported to the Hamilton, Hamilton North, and Lennox reservoirs operated by Eni for permanent storage, NSTA noted.

“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,” said Ed Miliband, UK Energy Secretary.

“Thanks to the North Sea, we have one 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.”

The NSTA said the HyNet approval followed “exhaustive technical work” to confirm site integrity, including assessments of potential leakage risks.

The UK launched its first large-scale carbon storage licensing round in 2022, resulting in 21 awarded areas. The NSTA said an estimated 100 stores will need to be appraised to meet net-zero targets.

In October 2024, the UK government committed up to £21.7 billion in support of HyNet and the Northern Endurance Partnership, forecasting that CCS could contribute £5 billion per year to the economy and support 50,000 long-term jobs.