The Norweigan multinational energy company, along with its partners Shell and Total, have signed preliminary agreements with seven European companies to develop value chains in carbon capture and storage (CCS).
Equinor, Shell and Total, are studying the possibilities for developing CO2 storage on the Norwegian continental shelf.
The Northern Lights project is aiming to mature the development of offshore carbon storage on the Norwegian Continental Shelf and has the potential to be the first storage project site in the world receiving CO2 from industrial sources in several European countries.
Memoranda of Understanding (MoUs) have been signed with Air Liquide, Arcelor Mittal, Ervia, Fortum Oyj, HeidelbergCement, Preem, and Stockholm Exergi.
Source: Equinor
According to the agreements the parties will cooperate on possible CO₂ handling at relevant third-party’s premises and on transport to the Northern Lights project. The MoUs imply that the parties will:
- Evaluate solutions for CO₂ deliveries and transport.
- Develop a timeline for possible final investment decision and start of operations.
- Cooperate on the CCS dialogue with national authorities and the EU.
“Carbon capture and storage will be vital to reach the global climate goals of the Paris Agreement,” said Eldar Sætre, President and CEO of Equinor.
“Sustainable CCS projects can only be developed in cooperation between governments and companies.”
“We are therefore very pleased that the Northern Lights partners and leading European companies are taking the first steps to realise a European CO₂ transport and storage system.”
Equinor said final binding commercial agreements will depend on positive decisions for the Norther Lights project, the Norweigan State’s full-scale carbon capture and storage project and for third-party projects.
The partners are currently reducing costs and further developing the Northern Lights project aiming for an investment decision in 2020.
“We are also cooperating with the authorities to establish a commercial framework enabling us to pursue the project,” says Sverre Overå, project director for the Northern Lights project.