Operators and contractors are preparing for the imminent arrival of the Department of Energy and Climate Change's (DECC) formal guidelines on carbon capture and storage in the UKCS.

Rapid moves towards CO2 capture and storage as key elements of a sustainable energy policy, already backed by the Scottish Government, has seen the DECC move to put a new control regime in place.

Neil Anderson, partner with Ledingham Chalmers LLP in Aberdeen, said interest in the shift to carbon capture and storage has moved at a pace previously not seen, following the Scottish Centre for Carbon Storage’s recent identification of 29 depleted oil and gas fields which could be used for CO2 storage.

The DECC has already announced that all new combustion power stations, which includes not only coal but combined heat and power - known as CHP - and biomass plants with a rated electrical output of over 300MW, will need to be carbon capture-ready.


Mr Anderson feels that while the guidelines due to be introduced will set out rules to be followed in England and Wales, the issues covered are devolved matters and as such the guidelines should also be a material consideration for Scottish Ministers.

"New arrangements for offshore carbon capture and storage should help to optimise the potential for the sector, and its related enhanced oil recovery possibilities in Scotland, by giving a structured regime within which to operate," said Mr Anderson.

"Operators will, however, need to be ready for the conclusions of the DECC's consultation on guidance it will issue for the sector, which remains open until June 22, this year."

Mr Anderson said the emergence of CO2 capture and storage is not just of interest to oil and gas operators, as those with land in areas where projects are mooted to take place will be in a position to make a premium from large-scale energy producers and carbon capture and storage operators seeking suitable property to work from.

Mr Anderson, whose role at Ledingham Chalmers extends into all areas of corporate and commercial work, is the author of the UK's chapter in the major global energy publication "Getting The Deal Through - Gas Regulation 2009, Global Competition Review", published last month.

David Laing, chairman of Ledingham Chalmers LLP, said: "Neil's appointment last year brought his experience of working with organisations and transactions of all sizes and his credentials are strengthened further by his expertise in the power generation sector."

(GK/JM)