The UK's second offshore carbon dioxide storage licensing round has attracted applications for just six of the 14 areas offered, with three of those now subject to environmental review. The Department for Energy Security and Net Zero (DESNZ) and the Offshore Petroleum Regulator for Environment and Decommissioning opened consultation on the Appropriate Assessment (AA) on 20 July 2026, with submissions accepted until 19 August 2026. The modest response underscores the commercial challenges facing carbon capture and storage infrastructure development.
After the North Sea Transition Authority (NSTA) announced the second licensing round, an initial screening assessment was conducted in consultation with the Statutory Nature Conservation Bodies. That screening identified nine of the 14 areas as requiring further environmental review if applications were received. The licensing window closed on 24 March 2026. Of the six areas that attracted bids, three fell into the category requiring an Appropriate Assessment under UK environmental legislation.
The 138-page AA document is now open for industry and public comment. Submissions can be made via email to [email protected] or by post to OPRED in Aberdeen until 5pm on 19 August 2026.
The Appropriate Assessment examines potential impacts on protected marine habitats and species under UK conservation law. Key environmental concerns typically include disturbance to seabed ecology during injection well drilling, potential leakage risks to marine fauna, and interaction with existing fishing grounds and subsea infrastructure.
Once the consultation closes in August, the regulator will publish final assessment conclusions and indicate which of the three areas receive environmental clearance. Licences are typically awarded within three months of clearance. The slow take-up across the 14 available areas suggests commercial interest remains concentrated rather than distributed across the wider acreage offered.
