Jurisdiction: United Kingdom
Commencement: 30th January 2024
Amends: Energy Act 2023 (Commencement No. 1) Regulations 2024
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.
Various duties apply.
The Energy Act 2023 (Commencement No. 1) Regulations 2024 is amended so that Section 303 will no longer come into force on the 31st January 2024. Section 303 relates to the decommissioning of civil nuclear sites.
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