HISTORIC INVESTMENT IN NORTHERN LIGHTS PROJECT
Equinor, Shell and Total have decided to invest in the Northern Lights project in Norway’s first exploitation licence for CO? storage on the Norwegian Continental Shelf. Plans for development and operation have been handed over to the Ministry of Petroleum and Energy.
“The Northern Lights project could become the first step to develop a value chain for Carbon Capture and Storage (CCS), which is vital to reach the global climate goals of the Paris Agreement. Development of CCS projects will also represent new activities and industrial opportunities for Norwegian and European industries”, says Anders Opedal, executive vice president for Technology, Projects & Drilling at Equinor.
The investment decision is subject to final investment decision by Norwegian authorities and approval from the EFTA Surveillance Authority (ESA).
“This unique project opens for decarbonisation of industries with limited opportunities for CO2-reductions. It can be the first CO2 storage for Norwegian and European industries and can support goals to reduce net greenhouse gas emissions to zero by 2050”, says Opedal.
The investment decision concludes the study phase during which the Equinor, Shell and Total worked closely with Norwegian authorities to conduct engineering studies and project planning, drill a confirmation well and develop the necessary agreements. Following the investment decision, the partners intend to establish a joint venture company.
The initial investments will total almost NOK 6.9 billion. The project will generate much needed jobs for Norwegian industry, with an estimated 57 percent of the investment going to Norwegian contractors.
“CCS is a crucial technology to help society and economies thrive through the energy transition. Shell is active in all parts of the CCS value chain and Northern Lights further strengthens our global CCS portfolio. We appreciate the leadership shown by the Norwegian Government to accelerate the development of CCS value chains and believe that the Northern Lights CO2 transport and storage solution has the potential to unlock investment in capture projects across Europe,” says Syrie Crouch, vice president for CCUS in Shell.
The project will be developed in phases. Phase 1 includes capacity to transport, inject and store up to 1.5 million tonnes of CO2 per year. Once the CO2 is captured onshore by industrial CO2-emitters, Northern lights will be responsible for transport by ships, injection and permanent storage some 2,500 metres below the seabed.
The CO2 receiving terminal will be located at the premises of Naturgassparken industrial area in the municipality of Øygarden in Western Norway. The plant will be remotely operated from Equinor’s facilities at the Sture terminal in Øygarden and the subsea facilities from Oseberg A platform in the North Sea.
The facility will allow for further phases to expand capacity. Investments in subsequent phases will be triggered by market demand from large CO2 emitters across Europe.
(Source: Total – Image: Equinor)
- NOBLE CORPORATION FILES FOR CHAPTER 11 TO HANDLE 3.4 BILLION OF DEBT 04th August 2020
- VALARIS SELLS SIX DRILLING UNITS – FILING FOR BANKRUPTCY IS IMMINENT 03rd August 2020
- APACHE MAKES MAJOR OIL DISCOVERY AT KWASKWASI-1 OFFSHORE SURINAME 30th July 2020
- SCHLUMBERGER – THE MOST CHALLENGING QUARTER IN PAST DECADES 27th July 2020
- BAKER HUGHES REVENUE DOWN 21% YEAR-ON-YEAR 23rd July 2020
- CHEVRON TO ACQUIRE NOBLE ENERGY FOR $5 BILLION 21st July 2020
- HEEREMA’S SLEIPNIR BREAKS SINGLE LIFT RECORD AT JOTUN FIELD 20th July 2020
- CHINA TO BUILD 6 TO 8 NUCLEAR REACTORS ANNUALLY BETWEEN 2020 AND 2025 09th July 2020