Jurisdiction: United Kingdom

Commencement: 23^rdMay 2024

Amends: New Legislation
Mini Summary

Summary
In order to support the Net Zero Strategy to deliver Carbon Capture Usage and Storage (“CCUS”) targets, Industrial Carbon Capture Business Models have been introduced. These models will be the main mechanism for supporting low-carbon electricity generation, with the goal being to provide revenue support through a private law contract between an organisation who captures carbon dioxide as an eligible carbon capture entity and a carbon capture counterparty*.

* Carbon capture counterparty means a person designated by the Government to be a counterparty on their behalf for the purpose of carbon capture revenue support contracts.

Eligible entities
A carbon capture entity that is eligible for a carbon capture revenue support contract:

• must be located in the United Kingdom, with a view to the capture and storage of carbon dioxide or any substance consisting primarily of carbon dioxide that has been produced by commercial or industrial activities; and
• is not an excluded entity under regulation 4.

Duties

Jurisdiction: Scotland

Commencement: 30^th November 2021

Amends:

• The Storage of Carbon Dioxide (Licensing etc.) (Scotland) Regulations 2011

Mini Summary
The Storage of Carbon Dioxide (Licensing etc.) (Scotland) Regulations 2011 implement the requirements of Directive 2009/31/EC on the geological storage of carbon dioxide into Scottish law.

Carbon capture and storage is a key technology to decarbonise electricity generation. CO2 created from fossil fuel  power stations can be injected and stored in undersea geological formations in Scottish territorial waters.
Duties
The Regulations prevent Scottish ministers from granting licences for storing CO2 in the water column.

Licence applications that are made to Scottish Ministers must include a specified length of time required for exploration ‘appraisal term’ or a reason why exploration is not required. The licensing authority is obligated to specify the length of appraisal time or length of time within which an application for a storage permit must be made. Licences are required to include provisions detailed in Schedule 1 to these regulations regarding the closure of storage sites.

Licence holders may be granted consent for the storage permits that are located within the licensed area. The regulations detail application requirements, the criteria that must be satisfied and details of the information that is required to be included in the storage permit.

In the event of leakage or irregularity the licensing authority may direct the operator to take corrective measures.

Storage permits may be reviewed, modified or revoked where a change in operation occurs, irregularities or leaks occur or where there is a breach in the terms and conditions.

The regulations include requirements for the closure of sites and the post closure obligations.
Amendment

Link to full government text

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