The Crown Estate signed the agreement with National Grid last week for the permanent geological storage of carbon dioxide in a saline aquifer 70 miles from Flamborough Head.
The CCS project is linked to National Grid’s development of transportation and storage infrastructure serving carbon emitters, such as power stations and heavy industry, in the Humber region.
In a statement, the Crown Estate called the agreement “an exciting step forward for the fledgling industry”, adding that CCS is “an important technology in managing climate change and security of supply issues”.
Andrew Green, programme manager for CCS at the Energy Technologies Institute – which has invested £2 million in the project – has welcomed the agreement, calling it “a major step forward”.
However, Green added that “the industry requires innovation to make CCS economically viable”.