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The United Kingdom is in a crossroads in energy history. With the country attempting to strike a delicate balance between the urgent necessity to achieve energy security and the long-term objective of achieving net zero emissions by 2050, there is one organization that will be at the center of this balance: the North Sea Transition Authority (NSTA). The organization, which used to be called the Oil and Gas Authority, has been profoundly rebranded in 2022 to indicate a much more expanded mandate that goes way beyond the conventional hydrocarbon extraction. The NSTA is currently the mastermind behind the offshore energy development in the UK, as it facilitates the removal of the fossil-fuel-based legacy of the past and the introduction of the diversified, low-carbon future. The Evolving Role of the NSTA The main activity of the NSTA is to control and direct the oil, gas and carbon storage in the UK Continental Shelf (UKCS). Although its predecessor was more involved in the recovery of petroleum economically in an attempt to maximize its recovery, the recent NSTA is under a reformed approach that incorporates the issue of net zero commitments in each of its decisions. This twin emphasis is the reason why, as the UK relies on its own resources in order to reduce its dependence on the volatile global imports, the resources produced will do so with the least carbon footprint possible. The authority serves as an intermediary between the high-level governmental policy in climate and the technicalities of offshore activity. With the control of licensing of offshore assets, the NSTA can guarantee that the UK is a desirable location to invest in energy and at the same time face the operators responsible for their environmental performance. Basic Fundamentals and Supervision of Regulatory Bodies The North Sea Transition Authority has very extensive and technical responsibilities that span the whole lifecycle of the offshore energy projects. Licensing and Consenting: The NSTA is the controller of the North Sea. It also regulates the rounds of oil and gas exploration licenses, however, of more significance is the fact that it has introduced the first carbon storage licensing rounds in the UK. This will entail finding the right geological structures- mostly the expired gas fields- to permanently trap the captured carbon dioxide. Emission Monitoring and Reduction: It is an important attempt to control the emission of greenhouse gasses at offshore production. To curb the flaring and venting, the NSTA has enacted stringent Stewardship Expectations under which operators are expected to minimize flaring and venting. The authority motivates the industry to become more efficient in its operations by being able to track performance by annual emissions reports. Energy Integration: The NSTA advocates the idea of an integrated North Sea. This implies creating synergies across various energy industries, including electrification of oil and gas platforms by offshore wind or transforming current oil and gas pipelines into hydrogen pipelines. This is the holistic perspective which does not allow the offshore basin to be viewed as a collection of individual projects, but rather as a concerted energy system. Industry Effect on the UK Energy Industry The NSTA influence on the UK energy sector is more than immense especially in the economic stability and technological advancement. The NSTA offers the certainty that the long-term investors need by ensuring that there is a clear regulatory framework. The NSTA offers a consistent technical background in a time when the financial policy towards the operators of North Sea Transition Authority operators is frequently a matter of political controversy. Its activity guarantees the UK a just transition, which allows saving the high-skill jobs and global supply chains the oil and gas industry created and redirecting them to carbon capture and offshore wind. Besides, the NSTA emphasis on carbon capture, usage and storage (CCUS) is making the UK a global force on carbon abatement. Storing millions of tonnes of $CO 2 under the sea bed is not merely an environmental requirement but rather a booming industrial sector that the NSTA is currently fostering. Navigating a Net Zero Future The activity of the NSTA will only become more acute as the UK approaches 2030 and even later. The authority has a new role that consists of managing natural depletion of oil and gas in the North Sea and hastens the scale-up of hydrogen and carbon storage. Its value is calculated not only in barrels of oil equivalent, but also weighing the gigatonnes of carbon saved and the power of the national grid. North Sea is not a mere source of fuel anymore, it is an invaluable resource in combating climate change, and the NSTA is its main custodian. About H2Terminals We are transforming the supply chain of green hydrogen at H2Terminals through decentralizing the production and distribution. Our concept is to use green hydrogen made of wind and wave energy offshore of the North Sea Transition Authority on our offshore energy Islands. We aim to offer affordable and scalable solutions to enable countries to meet their net zero targets. Frequently Asked Questions 1. What does NSTA stand for? NSTA is an abbreviation of North Sea Transition Authority. It was previously the Oil and Gas Authority (OGA) and later re-branded in March 2022. 2. Is it a government department? The NSTA is a private, share limited company owned in its entirety by the Secretary of State of Energy Security and Net Zero. It is an executive non-departmental statutory organization. 3. Is NSTA continuing to license oil and gas? Indeed, NSTA still regulates the current licences, and manages production to maintain UK energy security, but any new activity should now be consistent with the UK net zero 2050 objectives. 4. What is the North Sea Transition Deal? It is the historic deal between the government of the United Kingdom and the offshore industry, which is supervised by the NSTA to speed up the energy transition and invest to the tune of 16 billion in low-carbon technologies. 5. What does the NSTA do in the way of Carbon

The HAR2 short list has been announced and now further rigorous evaluation will occurs with the 27 mentioned no doubt being reduced to a smaller number. It’s a hard and long path. Since HAR2 applications closed in Spring 2024, government has conducted a comprehensive assessment process to produce a shortlist of projects that are invited to the next stage of the HAR2 process. The shortlist contains the following 27 electrolytic projects across England, Scotland, and Wales:   Project name Lead developer Location Aldbrough Hydrogen Pathfinder Aldbrough Pathfinder Ltd North East Bardon Hill Hydrogen Hygen Energy Holdings Ltd East Midlands Binn Ecopark Hydrogen Facility Binn Ecopark Hydrogen Ltd Scotland Creca Hydrogen Facility Green Cat Hydrogen Scotland Fawley Green Hydrogen Hynamics Limited UK South East Grangemouth Green Hydrogen RWE Generation UK Plc Scotland Green Hydrogen 5 Green Hydrogen 5 Ltd Wales Grenian Hydrogen St Helens Grenian Hydrogen Ltd North West Harper Lane Hydrogen Hygen Energy Holdings Ltd Greater London Hartlebury Green Hydrogen Carlton Power Ltd West Midlands Humber H2ub® Uniper Hydrogen UK East Midlands Irvine Green Hydrogen Project ScottishPower Scotland Lhyfe Kemsley Lhyfe SA South East Lhyfe Wallsend Lhyfe SA North East Magor Net Zero Magor Net Zero Ltd Wales Pembroke Green Hydrogen 1 RWE Generation UK Plc Wales Selms Muir Hydrogen European Energy UK Ltd Scotland Shetland Hydrogen Project 1 Statkraft Hydrogen UK Holding Scotland Singleton Birch Kilns Centrica Energy Storage Ltd East Midlands South Tees Net Zero South Tees Net Zero Ltd North East St Austell Green Hydrogen Four Zeros Energy South West Strathallan Hydrogen Facility Strathallan Hydrogen Ltd Scotland Tees Green Hydrogen Phase 2 EDF Renewables Hydrogen Ltd North East Teesside Green Hydrogen H2 Energy Ecosystem UK North East Tyseley 10MW Motive Fuels Ltd West Midlands Walsall Green Hydrogen Carlton Power Ltd West Midlands Whitelee Green Hydrogen Phase 2 ScottishPower Scotland Government is pleased to announce this next stage of the HAR2 process and looks forward to working with industry to deliver its vision for a thriving low carbon hydrogen economy in the UK. Shortlisted project developers should continue to develop and further mature their projects, whilst aiming to drive down costs in accordance with the Cost Challenge Document we have published. A project’s inclusion on the shortlist does not guarantee Government support and, similar to the First Hydrogen Allocation Round (HAR1), it is unlikely that all projects will be successful. As such being on the shortlist does not imply availability of funding for any of the shortlisted projects.   A shortlisted project will need to pass a rigorous due diligence stage in order to progress to the next stage of the allocation process and our decisions on which projects will be successful will be based on value for money and affordability. We will provide a further update on the HAR2 process in due course.

Sir Sherard has been very supportive of H2Terminals so it was wonderful to read that he had the opportunity to meet with President Xi Jinping. On Friday, 28th March, President Xi Jinping met with a group of international business leaders, including CBBC Chair Sir Sherard, and CBBC President, Lord Sassoon. The meeting was held as a forum for China’s President to engage directly with global business leaders— both to discuss plans for further opening up the Chinese market and to hear their views and recommendations first-hand.President Xi Jinping was joined by Politburo Standing Committee Member Cai Qi, Vice Premier He Lifeng, and Ministers Wang Yi (MoFA), Zheng Shanjie (NDRC), Wang Wentao (MofCom), and Lan Fo’an (MoF). Tang Fangyu (CCP Central Committee) and Ma Zhaoxu (MoFA) were also in attendance. The business side featured 40 representatives from global multi-national companies including four CBBC members: AstraZeneca, GSK, HSBC, and Standard Chartered Bank. In addition to the UK group, company representatives from the US (16), Europe (14), Japan (two), South Korea (two), Saudi Arabia(one), and Brazil (one) were also in attendance. CBBC was one of only two business organisationsrepresented at the meeting, alongside the US-China Business Council.