Equinor ASA, Shell PLC and TotalEnergies SE have authorised the second section of the Northern Lights carbon, seize and storage (CCS) undertaking in Norway with a NOK 7.5 billion ($700 million) funding.
Part 2 will elevate Northern Lights’ capability from 1.5 million metric tons every year (MMtpa) to over 5 MMtpa. The growth will leverage present onshore and offshore infrastructures and set up new onshore storage tanks, pumps, a jetty and injection wells, in addition to fee new transport vessels, in accordance with TotalEnergies. The companions count on to place section 2 into service 2028.
They reached a remaining funding choice after signing a 15-year settlement with Swedish district power supplier Stockholm Exergi AB for the cross-border transport and storage of 900,000 metric tons of biogenic carbon dioxide emissions yearly beginning 2028.
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5 corporations have now agreed contracts with Northern Lights, the others being Heidelberg Supplies and Celsio in Norway, Yara within the Netherlands and Ørsted in Denmark. “As well as, Northern Lights is in superior discussions with a number of massive European industrial clients to market the remaining storage capability”, TotalEnergies stated in an internet assertion.
Part 1 has been accomplished and is anticipated to start out operation this summer time by serving Heidelberg Supplies. A ship will carry CO2 from Heidelberg Supplies’ cement manufacturing unit in Brevik for injection into an undersea reservoir in Øygarden the French power big stated.
Equinor stated individually, “The primary section of the Northern Lights undertaking aimed to display feasibility of a brand new enterprise mannequin, options, and operations by collaboration amongst authorities, clients and undertaking companions”.
“With sturdy help by the Norwegian authorities’s Longship initiative, section one is absolutely booked”, the Norwegian majority state-owned firm stated.
Launched September 2020 by the Norwegian authorities, Longship is a full-scale CCS undertaking aimed to display the seize of CO2 from industrial emitters for secure transport and storage. CO2 can be captured at Heidelberg Supplies’ cement manufacturing unit and Hafslund Oslo Celsio’s waste incineration plant, then liquefied and picked up by ships. The captured emissions can be transported to an intermediate storage facility in Øygarden, earlier than being pumped by pipes into the Norwegian continental shelf. Right here the CO2 can be saved safely 2,600 meters (8,530.18 toes) beneath the seabed. Northern Lights type the transport and storage a part of Longship.
“I’m delighted of the launch of Northern Lights section 2, which represents a big step ahead for the CCS business”, commented Nicolas Terraz, president for exploration and manufacturing at TotalEnergies. “Northern Lights can thus present a concrete resolution for the hard-to-abate industrial emitters in Europe, in order that they will cut back their CO2 emissions and thereby safe their companies’ sustainability”.
“The choice to broaden our CO2 transport and storage companies represents the following step in constructing a commercially viable CCS market in Europe”, commented Northern Lights managing director Tim Heijn.
Equinor chief govt Anders Opedal stated, “The help from the Norwegian Authorities and European Fee has been essential contributing elements to efficiently finishing section 1 and advancing section 2”.
“That we are actually in a position to progress the Northern Lights’ undertaking second section on a industrial foundation, demonstrates the worth of public-private partnerships to cut back threat and appeal to clients”, Opedal added.
About 80 p.c of the fee for constructing Northern Lights’ section 1 has been funded by the Norwegian state, whereas section 2 has secured EUR 131 million from the European Union’s Connecting Europe Facility, in accordance with Equinor. The EU funding counts towards the full funding of NOK 7.5 billion.
Northern Lights is equally owned by the three companions. Equinor stays the technical service supplier for section 2 and can be liable for its building and operation, in accordance with the corporate.
To contact the creator, e mail jov.onsat@rigzone.com
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