Northern Lights CCS Project Enters New Phase in Norway’s Climate Strategy
- Northern Lights will increase its CO2 storage capacity to more than 5 Mt per year
- Northern Lights signed a commercial agreement with Stockholm Exergi for transport and storage of 900 kt CO2/y, from 2028
- First CO2 storage from Phase 1 of the project is expected this summer
In the second phase of the Northern Lights development, TotalEnergies and its partners Equinor and Shell have announced the Final Investment Decision (FID) that would double the project’s transport and storage capacity from 1.5 million to over 5 million tons of CO2 annually starting in 2028.
The Northern Lights‘ initial phase is finished and prepared to accept CO2 from industrial sources. This summer is anticipated to see the beginning of operations, including the first shipment of CO2 from Heidelberg Materials’ cement mill in Brevik, Norway, to a reservoir 2,600 meters below the seabed off the coast of oygarden, western Norway, for injection and long-term storage.
The second phase announced today represents an investment of NOK 7.5 billion (~$700 million) and leverages existing onshore and offshore infrastructures. This expansion includes new onshore storage tanks, pumps, a jetty, injection wells and transport vessels – which are all expected to be completed for a start-up by the second half of 2028.
This FID of this second phase follows the signing of a 15-year commercial agreement between Northern Lights and the Swedish district energy provider, Stockholm Exergi, for the cross-border transport and storage of 900,000 tons of biogenic CO2 emissions annually, starting in 2028. Stockholm Exergi is the 5th company to commit with Northern Lights for transport and storage of its CO2 emissions, after Heidelberg Materials and Celsio in Norway, Yara in the Netherlands and orsted in Denmark. In addition, Northern Lights is in advanced discussions with several large European industrial customers to market the remaining storage capacity.
“I am delighted of the launch of Northern Lights phase 2, which represents a significant step forward for the CCS industry. Northern Lights can thus provide a concrete solution for the hard-to-abate industrial emitters in Europe, so that they can reduce their CO2 emissions and thereby secure their businesses’ sustainability”, said Nicolas Terraz, President Exploration & Production of TotalEnergies.
“The decision to expand our CO2 transport and storage services represents the next step in building a commercially viable CCS market in Europe. It confirms Northern Lights’ commitment to offer an effective solution for companies to reduce emissions. The investment decision is an important milestone for our company, our customers and industry partners, governments and regulators. We have jointly been working hard to establish the CCS chain and make a real difference enabling Europe to achieve climate targets”, said Tim Heijn, Managing director of Northern Lights JV.
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