Synergia Energy shot up 13% as it confirmed a successful application in the first North Sea carbon storage licensing round.
German group Wintershall Dea will partner Synergia as operator of the Camelot licence with the two companies operating as a 50/50 joint venture.
Synergia added the storage licence marks a "significant milestone" for the Medway Hub CCS project, which will capture and transport CO2 emissions from coastal Combined-Cycle Gas Turbine power stations in liquid form by marine tanker to a floating vessel (FISO).
From here, CO2 will be injected into depleted gas fields and saline aquifers, which are situated in the UK Continental Shelf, for permanent sequestration.
Next steps are an appraisal phase comprising seismic re-processing, technical evaluations and risk assessment, and a contingent design study leading to the potential storage licence application in 2028 following the final investment decision.
The first CO2 injection is anticipated for 2032.
Synergia's chief executive Roland Wessel, said: "Synergia is delighted to have Wintershall Dea as partners in the Medway Hub CCS project given Wintershall Dea's significant involvement in CCS projects in Norway and Denmark."
Shares rose 0.02p to 0.15p.