Synopsis
These rules support licensing schemes and support for carbon dioxide transport and storage under the Energy Act 2023.
A special administration regime for licensed operators aims to ensure transport and storage services continue.
Summary
The Carbon Dioxide Transport and Storage (Licensed Operators) Administration (England and Wales) Rules 2025 support licensing schemes and support for carbon dioxide transport and storage under the Energy Act 2023.
The rules came into force on 29 October 2025 and apply in England and Wales only.
What has changed?
A special administration regime was established for licensed carbon dioxide transport and storage operators under the Energy Act 2023, termed ‘T&S Administration’.
T&S Administration rules will apply when companies holding carbon dioxide transport and/or storage licences become insolvent. The rules allow the Secretary of State or Gas and Electricity Markets Authority to apply to the courts to appoint a T&S administrator.
Once appointed, the T&S administrator would be responsible for ensuring that transport and storage services continue or commence as planned. This prioritises the continued operation the carbon dioxide transport and storage network and aims to facilitate the rescue or transfer of the activities as a going concern.
T&S administrators are required to continue to comply with applicable environmental, health and safety legal obligations during the period they are responsible for the assets.
Background
The Energy Act 2023 establishes licensing requirements for the transport of CO2 by pipeline for geological storage. The licences will apply conditions on operators, including on revenues a transport and storage operator may receive.
The licensing system aims to facilitate the development of a CO2 transport and storage network, enabling the pipeline transport of emissions from power plants, industrial sites and low carbon hydrogen producers before emissions are placed into permanent storage.
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