Page 17 - Euroil Week 20 2020

EurOil PROJECTS & COMPANIES EurOil
Equinor, partners take FID on CCS project’s first phase
NORWAY
The investment requires a separatre FID
from the Norwegian government.
NORWAY’S Equinor, Royal Dutch Shell and France’s Total have taken a final investment decision (FID) on the first phase of a land- mark project to store carbon in the North Sea.
The Northern Lights project aims to establish a carbon, capture and storage (CCS) chain capa- ble of removing up to 5mn tonnes per year (tpy) of CO2 from onshore industrial sites in Norway, helping the country tackle its emissions. Equinor and its partners have already undertaken some groundwork, including engineering studies and drilling to test reservoirs.
The three companies have now sanctioned the project’s first exploitation phase, which will unlock almost NOK6.9bn ($670mn) in invest- ments. This will generate much needed jobs in Norway, which is contending with the economic fallout from the coronavirus (COVID-19) pandemic.
“The Northern Lights project could become the first step to develop a value chain for CCS, which is vital to reach the global climate goals of the Paris Agreement,” Equinor’s vice-president for technology, projects and drilling, Anders Opedal, said in a statement. “Development of CCS projects will also represent new activities
and industrial opportunities for Norwegian and European industries.”
The investment requires a separate FID from the Norwegian government, as well as clearance from EU regulators, in order to be realised. The Northern Lights group is banking on Norwegian state funds for the project. Once these steps have been taken, the partners will push ahead with developing a CCS chain to store up to 1.5mn tpy of CO2 by 2024.
A CO2 receiving terminal will be built in the Oygarden municipality of Western Norway, remotely operated by Equinor. Northern Lights will be responsible for transporting the carbon by ship and injecting it into reservoirs some 2,500 metres below the seabed for permanent storage.
The group identified reservoirs suitable for storage at a site near the Troll gas field in March, after drilling a well.
The chain is expected to be expanded at a later stage, with Northern Lights hoping to secure major CO2 emitters across Europe as customers. In September Equinor signed memoranda with seven potential customers: Air Liquide, Arce- lor Mittal, Ervia, Fortum, HeidelbergCement, Preem and Stockholm Exergi. ™
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