Equinor, Shell and TotalEnergies have made a final investment decision (FID) to progress phase two of the Northern Lights development. The decision was made after signing a commercial agreement with Stockholm Exergi to transport and store 900.000 tonnes of biogenic CO2 annually for 15 years.
Customer commitment is a decisive part of realising a carbon capture, transportation and storage (CCS) value chain.
Anders Opedal, CEO of Equinor says: ‘This is a major step in the further development of a large-scale carbon capture, transportation and storage value chain. The support from the Norwegian Government and European Commission has been important contributing factors to successfully completing phase 1 and advancing phase 2. That we are now able to progress the Northern Lights’ project second phase on a commercial basis, demonstrates the value of public-private partnerships to reduce risk and attract customers.’
The investment by the Northern Lights JV owners Equinor, Shell and TotalEnergies is 7.5 billion NOK. This includes the award of €131 million (ca 1,5 billion NOK) from the Connecting Europe Facility (CEF) funding scheme, approved by the European Commission last year.
Phase two of the development will increase the total injection capacity from 1.5 million tonnes of CO2 per year (mtpa) to at least 5 mtpa. The expansion through phase two builds on existing onshore and offshore infrastructure and includes additional onshore storage tanks, a new jetty, and additional injection wells. This development phase is expected to be completed and ready for operation in the second half of 2028. Equinor will remain the technical service provider (TSP) for phase two, responsible for development, construction and operation on behalf of the partnership.
