WE NEED YOUR HELP - EMAIL OFGEM CONSULTATION RE CARBON CAPTURE AND STORAGE H&S COSTS
Dear Supporters,
URGENT PLEASE HELP - Consultation closes 6th November 2026.
SUGGESTED EMAIL TEMPLATE INCLUDED BELOW.
We need as many people as possible to send a quick email. OFGEM are consulting on a Proposal to introduce a “health and safety policy re-opener” to carbon dioxide transport and storage licences for Liverpool Bay CCS (Carbon Capture and Storage Ltd).
Re-openers are “conditions built into the Licence that allow a Licensee to submit a business plan to Ofgem, upon receipt of which Ofgem may determine adjustments to aspects of the Licence. Typically adjustments may be made to the approved scope of work, the cost allowances, and / or target milestone dates.”
One of the re-opener mechanisms that was included in the Licences at Licence Award was the Qualifying Change in Law mechanism…..“This can be triggered following a change in law, published guidance, or ruling from a court that was not foreseeable….”
OFGEM state “Since the Licences were awarded, engagement with the Licensees has highlighted a potential gap in the current framework. There is a risk that changes in health and safety policy by the Health & Safety Executive (‘HSE’) or other safety regulator, or changes in how that policy is applied to these first-of-a-kind projects, could require modifications to the design, construction, or operation of CCS infrastructure. In some cases, those changes may give rise to material additional costs without constituting a Qualifying Change in Law. Where such changes could not reasonably have been foreseen, we consider the resulting risk to be largely outside the Licensees’ control and their ability to manage or mitigate. It is our view that not providing a mechanism for recovery of costs in the event that these risks materialise may drive the wrong behaviours by developers. Further it may potentially impact the financing of future CCS projects due to the perceived regulatory risks driving additional costs that will be borne by users of the networks.”
“The proposed H&S Policy Re-opener seeks to cover this gap, ensuring the appropriate risk allocation, while complying with relevant health and safety policy.”
Project Skylark is a 3-year collaborative Joint Industry Project (JIP) led by DNV to improve safety standards, dispersion modeling, and emergency response for high-pressure carbon dioxide (CO₂) pipelines used in Carbon Capture and Storage (CCS) networks. It involves the UK Government’s Health and Safety Executive, DESNZ (Department of Energy Security and Net Zero) and the Met Office.
Skylark is focused on four challenges. The first is understanding the interaction between pipeline failure, crater formation and atmospheric conditions to predict how CO2 disperses. The second is how terrain including slopes and valleys influences the behaviour of a dense vapour cloud produced by a CO2 pipeline leak.
The third is focused on emergency response and will test the equipment, techniques, and procedures used by emergency responders in large CO2 releases, including search and rescue operations and the impact on internal combustion engines. The final challenge will investigate how to vent CO2 from pipelines. This will involve studying the outflow rates, vent heights, and hazard distances associated with necessary venting events, ensuring safe dispersion of gas without compromising the integrity of a pipeline.
Crucially, Project Skylark was first presented publicly and to industry as early as 2023 and 2024. On 31st August 2023 a presentation on the proposed Skylark Trials was presented to the Carbon Capture and Storage Assocation (CCSA).
The Eni SpA group, is the owner and operator of the Liverpool Bay Carbon Dioxide (CO2) Transportation and Storage (T&S) infrastructure. It provides the CO2 transportation and storage infrastructure to serve HyNet CO2 pipeline, developed and constructed by Progressive Energy. Progressive Energy are also the lead developer for the Peak Cluster Pipeline. Both ENI and progressive Energy are members of the CCSA who were given a presentation about Project Skylark in August 2023.
Liverpool Bay CCS Ltd were awarded their licence in April 2025 (they applied in September 2024), it is inconceivable that they were unaware of Project Skylark when they applied for / were awarded their licence. i.e Project Skylark and its resulting potential changes to health and safety policy could have been reasonably foreseen.
OFGEM are now consulting on whether to allow a “Health and Safety Policy Reopener” for the Liverpool Bay CCS Ltd (HYNET) licence. This would potentially allow them to apply for significant extra costs (upto £30million) for additional works and design changes that may be due because of changes to Health and Safety requirements following the findings of Project Skylark – a project which Liverpool Bay Ltd / ENI / Progressive Energy should have been fully aware of before their licence was applied for and issued by OFGEM.
Please email OFGEM (closing date 6th November) with your thoughts about the “Health and Safety Reopener for CCS Licences”. A suggested email template is below. Please add / amend / edit as you see fit.
Email Edward Ash at ccus@ofgem.gov.uk
Objection to proposed CCS licence health and safety policy re-opener
Dear OFGEM,
I am writing to formally oppose the proposed introduction of a health and safety policy re-opener to carbon dioxide transport and storage licences.
The Reopener Mechanism “can be triggered following a change in law, published guidance, or ruling from a court that was not foreseeable.” Project Skylark has been discussed publicly and with industry since 2023. Indeed, it was presented to the Carbon Capture and Storage Association (CCSA) in August 2023. Liverpool Bay CCS Ltd is a subsidiary of Eni and serves the HYNET pipeline whose lead partner is Progressive Energy. Both Eni and Progressive Energy are members of the CCSA. It is inconceivable that they were not aware of Project Skylark when they applied for the Liverpool Bay CCS licence in September 2024. Therefore, it was entirely and reasonably foreseeable that there may be additional costs associated with HSE requirements following the conclusion of Project Skylark and this risk should have been included in their business case, at the time.
CCS Infrastructure should not be allowed to proceed with additional significant financial allowances when significant health and safety requirements remain uncertain, potentially exposing network users and ultimately the public to additional costs.
Please record my objection as part of this consultation and take it into account when making your decision.
Kind regards,
(Name)
Thank you for your help and support.
Further info can be found below....
https://www.ccsassociation.org/our-members/