Equinor, Shell, TotalEnergies Invest $712M for Northern Lights CCS Expansion

The Northern Lights Carbon Capture and Storage facilities at Øygarden outside of Bergen (Credit: Torstein Lund Eik / Equinor)

Equinor, Shell and TotalEnergies have made a final investment decision (FID) to progress phase two of the Northern Lights carbon capture and storage (CCS) 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 realizing a carbon capture, transportation and storage (CCS) value chain.

The investment by the Northern Lights joint venture owners Equinor, Shell and TotalEnergies is $712.3 million.

This includes the award of $141.3 million 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.

The first phase of the Northern Lights project aimed to demonstrate feasibility of a new business model, solutions, and operations through collaboration among authorities, customers and project partners.

With strong support by the Norwegian government’s Longship initiative, phase one is fully booked. Northern Lights is prepared to receive CO2 from emitters, offering a secure and permanent storage solution for CO2.

Phase one operations are planned for this summer, with CO2 from Heidelberg Materials’ cement factory in Brevik expected to arrive at the receiving terminal near Kollsnes on Norway’s west coast. Additionally, Northern Lights will store CO2 from the Hafslund Celsio waste-to-energy plant in Oslo, as part of the Longship project.

“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,” said Anders Opedal, CEO of Equinor.

• Northern Lights CCS Facilities Set to Receive First CO2 Injection