Norway's Carbon Storage Project Gets $2.45 Billion in Funding

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The world's largest proposed undersea carbon capture and storage (CCS) project, located in Norway waters, has been awarded 2.1 billion euro ($2.45 billion) in funding by the European Free Trade Association (EFTA).

The Northern Lights project, which was recently guaranteed funding of $682 million by oil and gas majors Equinor (NYSE:EQNR) (Stavanger, Norway), Shell (NYSE:RDS.A) (The Hague, Netherlands) and Total SA (NYSE:TOT) (Paris, France), will transport captured CO2 deep below the North Sea. For additional information, see May 26, 2020, article - Oil & Gas Majors Invest in Massive CO2 Storage Project. Located on the Norwegian Continental Shelf, Northern Lights is Norway's first full-chain CCS project and will be developed in phases, with Phase 1 providing the capacity to transport, inject and store up to 1.5 million tonnes of CO2 per year under the sea bed. The project will cost up to 2.6 billion euro (£3 billion) in total, which will cover construction and 10 years of operation. The Norwegian government will cover around 80% of the project's estimated budget.

"This CCS project is a groundbreaking step towards tackling climate change -- an issue that affects all of us. Protecting the environment is at the heart of the European agenda, and ESA is pleased to work with Norway and the European Commission to find ways to support this important goal", said Bente Angell-Hansen, President of ESA.

The approved project would allow for the establishment of carbon capture facilities at Norcem, a cement factory in Brevik, and Fortum Oslo Varme, a waste-to-energy plant. Last September, Industrial Info reported that a group of leading European steel and cement makers had announced their support for Northern Lights. They include Air Liquide, ArcelorMittal S.A. (NYSE:MT) (Luxembourg), Ervia, Fortum Oyj, HeidelbergCement AG (Heidelberg, Germany), Preem AB (Stockholm, Sweden), and Stockholm Exergi. For additional information, see September 18, 2019, article - Heavy Industry Giants Back Norway's Biggest Carbon Capture Project.

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.

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