Jurisdiction: United Kingdom
Commencement: 1st October 2024
Amends: Energy Act 2023
Mini Summary
The Energy Act 2023 sets out that organisations must have a licence to transport hydrogen gas and carbon dioxide through a pipeline, and dispose of carbon dioxide via geological storage*.
*Geological storage is the injection of captured carbon dioxide into rock to remove it from the atmosphere.
It aims to promote sustainable development and help the United Kingdom achieve net-zero emissions** targets.
**Net-zero emissions means reducing greenhouse gas emissions to zero.
Counterparties
The Secretary of State may appoint a counterparty* for:
carbon dioxide capture, transport and storage providers**;
- hydrogen producers; and
- hydrogen transport and storage providers***.
- *A counterparty is an individual or organisation that provides financial support to organisations.
**A carbon dioxide capture, transport and storage provider is a person that captures, transports or stores carbon dioxide under a licence.
***A hydrogen transport and storage provider is a person that transports or stores hydrogen or a compound containing hydrogen.
Counterparties may:
- impose conditions on providers;
- specify the process to be followed when producing hydrogen or capturing carbon dioxide; and
- specify targets for hydrogen production and carbon capture.
Duties
Various duties apply and are available to view on the Legislation Update Service.
Amendment
The following sections come into force on 1st October 2024.
- Section 166 (2) which amends the Electricity Act 1989 to prohibit anyone who co-ordinates and directs the flow of electricity onto and over transmission systems by means of which the transmission of electricity takes place, to do so without a licence.
- Section 168 (2) which amends the Gas Act 1986 to establish an Independent System Operator and Planner ; and
- paragraphs 1, 2, 4 and 5 of Schedule 11 (minor and consequential amendments relating to Part 5).