CO₂ storage capacity for Northern Lights to be expanded

‘This is enormously important. We will not reach our climate targets without large-scale carbon management. The fact that Northern Lights has decided to invest in expanding its capacity, on a purely commercial basis, is a milestone in the work to combat climate change and to establish CO₂ storage as a new Norwegian ocean industry,’ said Minister of Energy Terje Aasland.

The expansion in Phase 2 will increase the transport and storage capacity from 1.5 million to at least 5 million tonnes of CO₂ per year. The project includes expanding the onshore terminal at Øygarden with a new jetty, constructing additional storage tanks and increasing the pump capacity. Offshore, the number of injection wells will be increased from two to four.

In connection with its investment decision for Phase 2, Northern Lights has signed an agreement with Stockholm Exergi to receive up to 0.9 million tonnes of CO₂ annually from a bioenergy facility in the Stockholm region.

‘We are now seeing the value of the state investing in green, immature technologies in an early phase. If the authorities had not facilitated and invested in large-scale CO₂ storage on the continental shelf, we would not be seeing this development today. We have now reached the point where Norway can offer CO₂ storage services to European companies with large point source emissions, on commercial terms. This presents great opportunities,’ said Aasland.

The investment in this expansion amounts to NOK 7.5 billion. The EU has awarded funding of EUR 131 million. The remainder of the financing comes from the company itself, without financial support from the Norwegian state.

Background:
Northern Lights constitutes the transport, reception and storage part of Norway’s full-scale carbon capture and storage (CCS) demonstration project “Longship”. Northern Lights will receive captured CO₂ at an onshore receiving terminal in Øygarden Municipality. The CO₂ will be temporarily stored before being transported by pipeline to the injection wells on the seabed of the Norwegian Continental Shelf. Through these wells, the CO₂ will be injected into the “Aurora” reservoir for safe and permanent storage.

In addition to Northern Lights, Longship includes two capture projects: Heidelberg Materials’ cement plant in Brevik (Porsgrunn Municipality) and Hafslund Celsio’s waste-to-energy plant at Klemetsrud in Oslo. Beyond Heidelberg Materials and Hafslund Celsio, Northern Lights has also entered into agreements under Phase 1 with Yara and Ørsted.

So far, the Ministry of Energy has awarded 12 exploration licences and one exploitation licence (Northern Lights) for CO₂ storage on the Norwegian Continental Shelf. In addition, one new exploration licence offer has been offered.