Europe Lists Carbon Storage Targets for 44 Oil & Gas Companies

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has named 44 oil and gas companies it expects to contribute heavily to its goal of storing at least 50 million tonnes of CO2 per year by 2030.

The adopted regulation and corresponding decision outlines the obligations that the companies will be expected to meet as part of the Net-Zero Industry Act (NZIA). It sets out the individual shares of oil- and gas-producing companies in fulfilling the collective target of 50 million tonnes of annual CO2 injection capacity into geological storage sites by the end of the decade. The amount each company is expected to provide is related to their share of the European Union's crude oil and natural gas production from 2020 and 2023. The top three companies are Dutch firm Nederlandse Aardolie Maatschappij (NAM) (Assen, Netherlands)--owned 50:50 by Shell plc (NYSE:SHEL) (London, England) and ExxonMobil Corporation (Spring, Texas)--Romania's OMV Petrom (Bucharest) and S.N.G.N Romgaz (Medias). They will be expected to provide CO2 injection capacity of 6.3 million tonnes, 5.9 million tonnes and 4.1 million tonnes, respectively. Industrial Info is tracking more than 450 European carbon capture, storage and transport projects worth almost US$35 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

The listed companies have until the end of this month to submit a detailed plan to the Commission explaining how they plan to contribute to the EU's 2030 carbon storage target. The plan should confirm the volume of new CO2 storage and injection capacity they aim to have ready by 2030, and specify the methods and intermediate targets they will use to achieve this. The Commission recognized that many industrial plants in Europe rely on carbon capture and storage (CCS) for their decarbonisation efforts, but "the number of CO2 storage sites remains underdeveloped." Starting in 2040, the Commission estimates that the EU will need to capture and permanently store approximately 250 million tonnes of CO2 each year to achieve climate neutrality by 2050.

"On our way to climate neutrality, we need a portfolio of effective decarbonisation solutions," said Kurt Vandenberghe, the Commission's director general for climate action. "Carbon capture is part of our strategy to deliver emission reductions and permanent removals for energy-intensive industries. The Net-Zero Industry Act mandates an annual CO2 safe and permanent storage capacity in the EU of at least 50 million tonnes by 2030 and makes the European oil and gas industry part of the solution. Having extracted hydrocarbons and contributing to greenhouse gas emissions, it will now contribute to storing CO2 and help mitigate climate change. By combining their industrial know-how with faster permitting processes and robust financial support - including from the ETS-resourced Innovation Fund - we can make substantial progress in advancing industrial decarbonisation and modernisation in Europe."

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).