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Released June 26, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With four licenses awarded for offshore storage, the Norwegian government said Tuesday it was bent on establishing a profitable and sustainable new industry in the country.
The Norwegian Ministry of Energy awarded two licenses to state-backed Equinor (NYSE:EQNR) (Stavanger, Norway), one to a group consisting of the regional arm of Austrian energy company OMV (Vienna), Norway's Var Energi (Stavanger) and Lime Energy, and one to Aker BP ASA (Lysaker, Norway) and the Norwegian subsidiary of Polish energy firm PGNiG (Warsaw).
Terje Aasland, the Norwegian energy minister, said storage needs to be part of the value chain for carbon in order for a viable energy transition to take place.
"Today's awards are therefore a new, important step towards establishing Norway as a leading player in large-scale commercial CO2 storage for European emission sources," he said. SLB (NYSE:SLB) (Houston, Texas), formerly Schlumberger, announced plans in March to spend about $380 million to acquire an 80% stake in Norway's Aker Carbon Capture (Lysaker). Gavin Rennick, the president of SLB's new energy division, said the world's industries need to adopt carbon capture and storage (CCS) quickly in order to achieve a net-zero economy.
"There is no credible pathway toward net zero without deploying carbon capture and sequestration at scale," he said.
CCS infrastructure is typically associated with the direct source of pollution. For Norway, the government said it's fostering the storage potential for storage in the subsea geological formations in the North Sea, some of which are associated with depleted oil and gas fields.
Equinor already is working alongside Anglo-Dutch major Shell plc (NYSE:SHEL) (London, England) and French company TotalEnergies SE (NYSE:TTE) (Courbevoie, France) to advance the Northern Lights project, part of the broader Longship program for carbon sequestration in Norway.
Longship was described by the Norwegian government as "the greatest climate project" it has ever pursued.
The $2.6 billion Longship project envisions an initial storage capacity of 1.5 million metric tons of CO2 annually over a 25-year time span. That phase could begin as early as 2025. A second phase could increase that capacity to 5 million tons.
Pollution from onshore industries would be captured and liquified for transport by ship for injection into a submarine aquifer in the North Sea.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of project reports tied to the Northern Lights Project.
Elsewhere, the Norwegian government said it signed arrangements with Belgium, Denmark, the Netherlands and Sweden for the cross-border shipments of CO2, which can be stored or used in anything from the beverage industry to enhanced oil recovery methods.
"It's all hands on deck," said Lars Aagaard, the Danish minister for climate, energy and utilities.
The International Energy Agency considers Norway to be a leader in CCS deployment, which may play an integral role in global climate goals. Nevertheless, Norway may have its work cut out for it in advancing further in the energy transition because its own electricity sector is already zero emissions due to the use of hydroelectric power on the grid.
Norway is an important oil and natural gas supplier to the European economy, but powers most of its own economy with renewables.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Norwegian Ministry of Energy awarded two licenses to state-backed Equinor (NYSE:EQNR) (Stavanger, Norway), one to a group consisting of the regional arm of Austrian energy company OMV (Vienna), Norway's Var Energi (Stavanger) and Lime Energy, and one to Aker BP ASA (Lysaker, Norway) and the Norwegian subsidiary of Polish energy firm PGNiG (Warsaw).
Terje Aasland, the Norwegian energy minister, said storage needs to be part of the value chain for carbon in order for a viable energy transition to take place.
"Today's awards are therefore a new, important step towards establishing Norway as a leading player in large-scale commercial CO2 storage for European emission sources," he said. SLB (NYSE:SLB) (Houston, Texas), formerly Schlumberger, announced plans in March to spend about $380 million to acquire an 80% stake in Norway's Aker Carbon Capture (Lysaker). Gavin Rennick, the president of SLB's new energy division, said the world's industries need to adopt carbon capture and storage (CCS) quickly in order to achieve a net-zero economy.
"There is no credible pathway toward net zero without deploying carbon capture and sequestration at scale," he said.
CCS infrastructure is typically associated with the direct source of pollution. For Norway, the government said it's fostering the storage potential for storage in the subsea geological formations in the North Sea, some of which are associated with depleted oil and gas fields.
Equinor already is working alongside Anglo-Dutch major Shell plc (NYSE:SHEL) (London, England) and French company TotalEnergies SE (NYSE:TTE) (Courbevoie, France) to advance the Northern Lights project, part of the broader Longship program for carbon sequestration in Norway.
Longship was described by the Norwegian government as "the greatest climate project" it has ever pursued.
The $2.6 billion Longship project envisions an initial storage capacity of 1.5 million metric tons of CO2 annually over a 25-year time span. That phase could begin as early as 2025. A second phase could increase that capacity to 5 million tons.
Pollution from onshore industries would be captured and liquified for transport by ship for injection into a submarine aquifer in the North Sea.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of project reports tied to the Northern Lights Project.
Elsewhere, the Norwegian government said it signed arrangements with Belgium, Denmark, the Netherlands and Sweden for the cross-border shipments of CO2, which can be stored or used in anything from the beverage industry to enhanced oil recovery methods.
"It's all hands on deck," said Lars Aagaard, the Danish minister for climate, energy and utilities.
The International Energy Agency considers Norway to be a leader in CCS deployment, which may play an integral role in global climate goals. Nevertheless, Norway may have its work cut out for it in advancing further in the energy transition because its own electricity sector is already zero emissions due to the use of hydroelectric power on the grid.
Norway is an important oil and natural gas supplier to the European economy, but powers most of its own economy with renewables.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
