Three companies win CO2 storage license in Norway’s North Sea
The Norwegian Ministry of Petroleum and Energy has granted an exploration license for CO2 storage on the Norwegian continental shelf (NCS) in the North Sea to three companies.
The exploration permit, located east of the Sleipner Øst field, has been allocated to Sval Energi, Storegga Norway and Neptune Energy Norway.
Sval Energi will be the operator, holding a 40% stake, while Storegga and Neptune Energy will each hold a 30% stake.
To remind, the partners announced in February that they had submitted an application for the Trudvang CO2 storage project in the Norwegian North Sea.
“We are pleased to secure our first CO2 storage licence in Norway. The North Sea has great potential to become a hub for carbon storage, given the proximity to CO2 emitters and the geology which is suitable for CO2 storage,” said Neptune Energy’s Managing Director in Norway and the UK, Odin Estensen.
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“Neptune Energy was recently awarded three CO2 storage licences in the UK and we continue to progress our L10 carbon storage project in the Netherlands. Our ambition is to build a portfolio of carbon stores linked to our core areas in the North Sea.”
According to the Ministry, the permit is offered with a binding work program with installed mileposts that ensure fast and efficient progress, or the withdrawal if the licensees do not carry out the storage project.
The first steps include conducting 3D seismic acquisition, G&G studies including 3D geo- and reservoir modeling, as well as studies to evaluate leakage risk and injection strategy. This is expected to take two years.
After this, conceptual field development studies will be undertaken and a preferred development concept selected, followed by a plan for development and operation (PDO) and a final investment decision (FID) if the partners decide to proceed with the project.
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“Capturing and storing large amounts of CO2 is important in order to reach the climate targets and retain industrial jobs in Norway and Europe. The awarding of this new permit contributes to Norway playing an important role in the establishment of commercial large-scale CO2 storage for European emission sources,” said Terje Aasland, Norwegian Minister of Petroleum and Energy.
The Norwegian authorities reviewed applications from five companies following the announcement of the suitable acreage in January.
The award represents the fifth time acreage has been awarded for CO2 storage offshore Norway and the seventh license. Before this, five licenses were awarded in the North Sea, including two announced in March, and one in the Barents Sea.
“It is important that attractive storage space becomes available to companies that have concrete industrial plans that entail a need for storage. I am pleased to be able to offer this exploration permit to three new companies. We need more players to strengthen the development of CO2 storage as a new, important, commercial marine industry on the Norwegian continental shelf,” Aasland added.
Source: Offshore Eenrgy