As the global energy landscape shifts towards decarbonization, Norway has a pivotal role in carbon capture and storage (CCS) efforts. On September 4, 2024, the Norwegian Ministry of Energy announced that six companies had submitted applications to secure three CO2 storage areas on the Norwegian Continental Shelf (NCS). This announcement marks a significant step in the country’s commitment to carbon capture usage and storage (CCUS) as part of its broader climate and energy strategy.
The Bidders for CO2 Storage Licenses
The six companies vying for these highly sought-after licenses include major industry players:
Aker BP
Equinor Low Carbon Solutions
Harbour Energy Norge
Horisont Energi
Storegga Norge
TotalEnergies EP Norge
These companies are seeking to secure specific acreage for CO2 storage located in the North Sea. The application window, which opened on June 6, closed on August 29, with license awards expected in the second half of 2024.
Norway’s Role in Global CO2 Storage
Norway has long been a leader in the development of CCS technology, and this latest round of applications underlines the country's importance in offering large-scale CO2 storage solutions for Europe. According to Terje Aasland, Norway’s Energy Minister, the interest in this round of licensing is both encouraging and essential to achieving the country’s and Europe’s climate goals.
“It is gratifying that we are experiencing great commercial interest in CO2 storage on the shelf. Access to possible storage space is a prerequisite for Norwegian players to be able to offer large-scale, commercial CO2 storage for emission sources in Europe," said Aasland. He further highlighted the government's commitment to creating an enabling environment for profitable CO2 storage, which could evolve into a new domestic industry and also help Europe reduce emissions.
Previous CO2 Storage Licenses
This is not Norway’s first effort to grant CO2 storage licenses. In the sixth round of storage licensing, which concluded in June 2024, four exploration licenses were awarded. Equinor secured two licenses, while Aker BP, PGNiG Upstream Norway, Vår Energi, OMV (Norge), and Lime Petroleum were among the other recipients. The strong participation in these rounds reflects the increasing commercial and environmental significance of CO2 storage.
So far, Norway has awarded seven licenses for CO2 storage: six in the North Sea and one in the Barents Sea. Notably, Sval Energi, Storegga Norway, and Neptune Energy Norway secured permits in the fifth round for acreage located near the Sleipner Øst field.
The Importance of CO2 Storage in Achieving Climate Goals
CO2 storage, a critical part of CCUS technology, is viewed as one of the most viable solutions for mitigating carbon emissions from industrial sources. By capturing CO2 and injecting it into geological formations deep underground, companies can prevent large amounts of greenhouse gases from entering the atmosphere, making significant strides in global decarbonization efforts.
Norway's emphasis on CO2 storage aligns with the broader European Union goals of reducing emissions and meeting climate targets. As one of the pioneers of CCS technology, Norway’s vast offshore infrastructure and experience in the oil and gas industry provide a solid foundation for becoming a leading hub for carbon storage in Europe.
What Lies Ahead
The competition for CO2 storage licenses on the NCS is expected to remain fierce as demand for carbon storage increases. With exploration licenses slated to be awarded by the end of 2024, these companies are positioning themselves to play a key role in the future of carbon capture and storage.
As more countries strive to meet their climate targets, Norway’s continued leadership in CCS technology will be essential. Through initiatives like this, the Norwegian government is facilitating a transition to a more sustainable and low-carbon future for Europe and beyond.
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