Context
Earlier this year, the Carbon Capture and Storage Association (CCSA) responded to the UK Government’s consultation on ”Building the North Sea’s energy future”. This consultation was run by the North Sea Transition Authority (the NSTA), the regulator for North Sea oil and gas, offshore hydrogen, and carbon storage industries. The consultation focused on ensuring a managed, prosperous, and secure energy transition – one that enables the UK to deliver on its ambition to become a global clean energy superpower.
The UK’s ability to lead this global shift hinges on unlocking the full potential of the North Sea. With world-class geology across the UK Continental Shelf (UKCS) and a workforce renowned for offshore expertise, the CCSA emphasised that Carbon Capture, Utilisation and Storage (CCUS) must sit at the heart of the North Sea transition – reducing emissions, supporting skilled employment and strengthening the UK’s international leadership in clean energy.
Why Does It Matter?
CCUS is critical to the UK’s energy transition and the North Sea presents a unique opportunity for its deployment, critical for meeting net zero targets while also generating economic growth. With an estimated 78 gigatonnes of Carbon Dioxide (CO2) storage capacity, the UK holds over a third of Europe’s entire storage potential. This makes the North Sea one of the most valuable assets for industrial decarbonisation in both the UK and wider Europe.
The CCSA’s response stressed the need to keep CCUS at the centre of planning for the North Sea’s future – not just for essential emission reductions, but to grow UK supply chain capabilities and skilled workforces to secure a leading position in the global carbon capture market.
From vision to action
The CCSA welcomes DESNZ’s focus on building new clean energy industries and leveraging the North Sea’s established expertise. However, it argues that stronger and clearer policy direction will be needed to turn ambition into action.
To fully realise the UK’s CCUS potential, the Government must think about providing signals and support to projects and clusters across the country that could handle European volumes of CO₂, while accelerating work on non-pipeline transport and cross-border trade. A joined-up approach will be essential to ensure that the UK’s CCUS industry can operate efficiently, affordably, and at scale.
Investment in the North Sea’s clean energy future must also go hand in hand with investment in its people and supply chains. The transition offers a natural pathway for the oil and gas industry to redeploy its capabilities, with 80% of the Carbon Capture and Storage (CCS) value chain targetable by the O&G supply chain. With the right policies, the growth of UK CCUS exports could add £4.3 billion to Gross Value Added by 2050.
But this opportunity depends on timing. Declining North Sea activity makes it imperative for the Government to act decisively to align supply chain readiness with project deployment. Without this coordination, there is a real risk of losing skills, capacity, and competitive advantage, particularly among small and medium-sized enterprises.
The CCSA has therefore called for measures that provide investors with confidence and continuity: a clear CCUS project pipeline, support for early movers, and targeted efforts to protect existing industrial capabilities. It also emphasises the need to address workforce challenges – including skill shortages, an ageing workforce, and limited access to training – through long-term, strategic planning. With the right support, the UK can develop a skilled, future-ready workforce capable of delivering CCUS at scale and speed.
Balancing energy transition and regulation
As the UK reforms it’s licencing of the North Sea, the CCSA urges a balanced approach that reduces emissions without increasing the UK’s dependence on imported, high-carbon fuels. The transition must avoid unintended consequences that could slow CCUS deployment or undermine broader net zero objectives.
The CCSA’s members have emphasised the importance of clear, transparent regulation and the need to recognise that CCUS and other clean energy sectors are fundamentally distinct from oil and gas extraction. For the North Sea’s transition to succeed, the NSTA’s objectives must reflect this difference – and the regulatory framework must be consistent, well-resourced, and closely aligned with wider Government policy.
Turning commitment into delivery
The next step is for the UK Government to translate consultation feedback into a detailed plan for the North Sea’s future. The CCSA reaffirms that CCUS must be central to that strategy.
Clear communication and transparent timelines are critical to building investor confidence. The Government’s £21.7 billion CCUS funding commitment represents a major milestone, but funding alone is not enough. It must be accompanied by enabling policies that strengthen the supply chain, develop the workforce, and remove barriers to market growth.
One such barrier is the need for cross-border CO₂ transport. This could be unlocked through a UK–EU agreement under the Trade and Cooperation Agreement, and through reforms to the UK and EU Emissions Trading Schemes. Encouragingly, the UK and EU are working together toward linking these systems – a step that could accelerate international collaboration on decarbonisation.
The Government also has a key role to play in clarifying how existing oil and gas infrastructure can be repurposed to support net zero goals. Repurposing pipelines, wells, and offshore facilities offers a cost-effective way to build CCUS capacity while sustaining local economies and protecting energy communities in transition.
A collaborative future for the North Sea
The CCSA welcomes continued engagement with DESNZ and stands ready to support the refinement of policy that will bring the North Sea’s clean energy future to life.
The region that once powered the UK’s industrial growth now stands at the centre of its low-carbon transformation. By harnessing its geological advantages, engineering expertise, and collaborative spirit, the North Sea can once again define the UK’s industrial identity – this time as a hub for CCUS, clean innovation, and sustainable growth.
With coordinated action, clear policy, and a shared vision, the North Sea can become not just a chapter in the UK’s energy history, but a cornerstone of its decarbonised future.