Lybster CO2 storage: short life working group - summary and conclusions

The short life working group on nearshore storage met on six occasions to work through the policy and legal implications of storing carbon dioxide permanently at a site called Lybster off the Caithness coast. Research conducted by SCCS concluded that Lybster is the only commercially viable store that lies within 12 nautical miles of the Scottish coast, and is therefore within Scottish minister’s competence to award a carbon storage licence.

The North Sea Transition Authority (NSTA) are authorised to award permits on behalf of the UK Government. As the NSTA have a well-established process (based on an EU model) for awarding licences/permits, the SLWG has methodologically worked through the NSTA’s process for awarding carbon licences/permits to ensure that:

• a similar process would work in a Scottish context
• the members of the SLWG understand the licencing process

The group has also considered the different roles that each of the departments/public bodies of the group would play (e.g. Marine Scotland, Health and Safety Executive, SEPA) and whether the correct policy and procedures are in place in each of the organisations.

Conclusions

In summary, the group was able to satisfy itself that policy and/or procedures within each of the relevant departments/bodies are either in place or are in the process of being put in place, and would be by the necessary time.

Scottish ministers are the licencing authority for CO2 storage. The Scottish Government does not have the expertise to do this directly, and so a third party would need to be enlisted. Further work is necessary to consider who would be best placed to do this on behalf of Scottish ministers. 

While Scottish ministers are responsible for the Carbon Storage Licence, any operator at Lybster will require an Economic Licence from the UKG (administered by Ofgem). There are also various consultations either live or concluded from the UKG that may have an impact on the future operation of Lybster – for example ‘non-pipeline’ transportation (in this instance by road) does not currently require an Economic Licence but this is under review. 

There is no concerns over the operability of the legislation for awarding carbon storage licences within Scotland, with our legislation broadly replicating that of the UKG. Any company working within the carbon storage framework will have to satisfy themselves that they are acting in compliance with all relevant, applicable legislative requirements.

Recommendations to Scottish ministers

The group recommends that Scottish Government explore options to appoint a body to provide a technical support and advisory role to allow Scottish ministers to grant CO2 storage licences.