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- Investment scales Northern Lights’ CCS capacity from 1.5 to 5 million tonnes CO2 annually.
- Marks significant progression toward commercializing large-scale CCS infrastructure.
- Strengthens public-private partnerships crucial for Europe’s clean energy transition.
Equinor, Shell, and TotalEnergies announced a NOK 7.5 billion investment decision to launch phase two of the Northern Lights carbon capture and storage (CCS) project. The decision follows a key commercial agreement with Stockholm Exergi to store 900,000 tonnes of biogenic CO2 annually for 15 years.
“This is a major step in the further development of a large-scale carbon capture, transportation and storage value chain. The support from the Norwegian Government and European Commission has been important contributing factors to successfully completing phase 1 and advancing phase 2. That we are now able to progress the Northern Lights’ project second phase on a commercial basis, demonstrates the value of public-private partnerships to reduce risk and attract customers,” says Anders Opedal, CEO of Equinor.
Phase two will expand the project’s capacity from 1.5 million tonnes per annum (Mtpa) to at least 5 Mtpa, utilizing both existing and additional infrastructure. Key developments include new onshore storage tanks, additional injection wells, and a new jetty, with operations slated to begin in the second half of 2028.
The expansion benefits significantly from a €131 million grant (approximately NOK 1.5 billion) awarded by the European Commission through its Connecting Europe Facility (CEF).
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Irene Rummelhoff, Executive Vice President at Equinor, emphasized the importance of CCS in achieving industrial decarbonization:
“I am very pleased that the partners in Northern Lights have progressed to the second phase of the Northern Lights project. As the recently published European Clean Industrial Deal makes clear, large-scale carbon capture, transport and storage will be crucial in the energy transition as it offers a solution for hard-to-abate industrial emitters to decarbonize their processes.”
Phase one, starting operations this summer, will initially manage CO2 from Heidelberg Materials’ cement factory in Brevik and Hafslund Celsio’s waste-to-energy plant in Oslo, supported by Norway’s government-backed Longship initiative.
Equinor continues to lead CCS globally, actively developing multiple storage licenses on the Norwegian continental shelf and beyond, aiming for robust returns through extensive government-industry collaboration.
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