Q220 Mr. Dave Anderson: We are all interested in seeing CCS become a success, but we have been advised by those involved in the industry that what they need is a clear licensing regime because at the moment they are not quite sure what they can and cannot do. Can you help them with this? What have you done so far?

Mr O'Brien: We want to ensure that for carbon capture and storage there is a clear licensing regime and that they are able to get a licence to carry out carbon capture and storage. As we develop our commercial capacity to do that that will need to happen. As you know, at the moment we do not have a project here or indeed anywhere in the world which is of a substantial commercial nature involving carbon capture and storage. What we want to do is put in place a regime which will enable carbon capture and storage to take place, issue licences to enable it to take place, ensure that it is properly inspected, that it is safe and that we have a system which will encourage the development of an industry in the future. I believe that in 20 years' time we will see a worldwide industry involving carbon capture and storage. We know the science is good. The commercial potential of it is yet to be assessed. If we can get it right, because it will deal with some of the problems we have around coal, which is important not just in the UK but important in much of the developing world, oil and gas and deal with some of the issues around global warming, the potential for a massive industry to develop 20 years' time from now around carbon capture and storage is great. I am certainly very optimistic that it will happen, but in order to ensure it develops properly in the UK we need to have the legal base and the creation of a licensing system and we want in due course to consult on how we are going to create that.

Q221 Mr. Dave Anderson: I am not sure I have understood you correctly. Are you saying we have got to get the demonstration project up and running first or would the licensing regime come first? The advice we are getting is that people could be getting on with the work but the licensing regime is not there to help them.

Mr Toole: There is a licensing regime coming into place later this year, but the Crown Estate is already preparing and will have the power from 6 April to start issuing leases for the areas. If your concern is that people who want to get hold of an area on which to do studies and work on carbon capture and storage are being frustrated by the licensing regime, we have been working very closely with the Crown Estate and very shortly they will be able to get into a dialogue with the Crown Estate to get hold of the territory that they might wish to use.

This is an uncorrected transcript of evidence taken in public and reported to the House. The transcript has been placed on the internet on the authority of the Committee. Neither witnesses nor Members have had the opportunity to correct the record. The transcript is not yet an approved formal record of these proceedings.

The full transcript may be read here.

Promoted by Paul Foy on behalf of Dave Anderson, both of St Cuthbert's Church Hall, Shibdon Road, Blaydon, NE21 5PT