Crown Estate awards ‘landmark’ lease agreement for CCS project

The Crown Estate has awarded a “landmark” lease agreement for a planned carbon store for one of the UK’s first net zero industrial clusters.

The Endurance reservoir – a saline aquifer in rocks deep under the North Sea – is being developed by the Northern Endurance Partnership, comprising BP, Equinor and Total Energies.

The partnership is planning to use the aquifer to store carbon dioxide captured from the East Coast industrial cluster – an amalgamation of the previously separate Net Zero Teesside and Zero Carbon Humber projects. The reservoir is located 145km from Teesside and 103km from the Humber estuary.

In 2021, the East Coast cluster was selected by the government to become one of the UK’s first net zero industrial hubs as part of the first phase of its carbon capture and storage (CCS) sequencing programme. The Teesside and Humber sub-clusters are eventually expected to capture up to 10 megatonnes and more than 17 megatonnes of carbon dioxide each year respectively.

The North Sea Transition Authority (NSTA) awarded carbon storage licences for the Endurance project to BP and Equinor in May 2022.

The agreement for lease, signed with lead operator BP, will now enable the developers to proceed with a permit application to the NSTA and then take up the lease if successful. The lease will allow them to undertake the construction of the offshore transport and storage infrastructure as well as carbon dioxide injection, monitoring and decommissioning.

Gus Jaspert, managing director of marine at The Crown Estate, said: “Supporting the development of CCS is a key priority for The Crown Estate, and we are delighted that the Endurance store is now a step closer to delivering on its enormous potential for contributing to net zero and delivering new jobs and thriving communities in one of the UKs industrial heartlands.

“The Crown Estate is firmly focussed on maximising the potential of the seabed in support of net zero and energy security. This project promises to be a significant contributor to both, alongside our vital work to accelerate our world-class offshore wind industry and to support the growth of emerging renewable technologies.”

Chris Daykin, managing director of the Northern Endurance Partnership, commented: “The East Coast Cluster has a critical role to play in the delivery of UK decarbonization, with the ability to remove almost 50% of the UK’s total industrial cluster emissions.

“Award of this agreement for lease marks another important step in the development of the Northern Endurance Partnership CO2 transport and storage system, and accelerates the efforts being made to decarbonise the UK’s industrial heartlands.”

In April, Shell and National Grid Ventures pulled out of the Northern Endurance Partnership, with BP and Equinor acquiring their stakes.

Three hydrogen and CCS projects that are part of the East Coast cluster were awarded funding by the government in April.