CO2 Storage: Northern Lights Consortium Invests more than Half a Billion Euros in Phase 2 of CCS Project

Stavanger, Norway – CCS (Carbon Capture and Storage) refers to the capture and storage, or CCU (Carbon Capture and Usage) to the capture and utilization of CO₂. The application of CCS/CCU technologies and their impact on climate protection remain controversial. In Norway, a major CCS project has recently received the green light for the implementation of its second phase.

The energy companies Equinor, Shell, and Total Energies, as part of their joint venture, have now officially approved Phase 2 of the Northern Lights CCS project. The decision followed the signing of a commercial agreement with Stockholm Exergi for the transport and storage of 900,000 tons of biogenic CO₂ per year over 15 years. The first phase of the Northern Lights project, with an annual storage volume of 1.5 million tons, was completed in 2024. In the second phase, the annual storage capacity will increase to 5 million tons of CO₂.

Green Light for Expanding CO₂ Storage Capacity: €640 Million Investment Planned

The energy companies Equinor, Shell, and Total Energies have made a Final Investment Decision (FID) for the second development phase of the Northern Lights CCS project. The decision to proceed came after signing a commercial agreement with Stockholm Exergi to transport and store 900,000 tons of biogenic CO₂ annually for 15 years. According to Equinor, customer commitment is a crucial part of the value chain for capturing, transporting, and storing carbon dioxide (CCS).

“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,” said Anders Opedal, CEO of Equinor.

The project partners Equinor, Shell, and Total Energies are investing NOK 7.5 billion (approx. €639 million). This includes a grant of €131 million (approx. NOK 1.5 billion) from the European Commission’s Connecting Europe Facility (CEF) funding program.

In Phase 2 of Northern Lights, the CO₂ storage capacity is to be increased from 1.5 million tons per year (Mtpa) to at least 5 Mtpa. This expansion includes additional onshore storage tanks, a new quay, and further CO? injections from contracting partners.

Northern Lights: A Key Component in a European CO₂ Capture and Storage (CCS) Network

Northern Lights is a joint project by Equinor, Shell, and Total Energies, forming the Northern Lights Joint Venture, which is building the infrastructure for transporting and permanently storing CO₂ from various industrial sources. The focus is on storing CO₂ in underground reservoirs in the Hafsfjord near Øygarden (Norway), at a depth of around 2,600 meters beneath the seabed. The project is seen as a key component of a European network for CO₂ capture and storage (CCS). Its goal is to store up to 1.5 million tons of CO₂ annually in Phase 1, completed in September 2024.

Companies that have signed agreements for CO₂ storage during Phase 1 include fertilizer producer Yara and Danish energy company Ørsted. Phase 1 is scheduled to go into operation in summer 2025. According to current plans, Phase 2 will increase annual storage capacity to 5 million tons. Yara aims to capture and store 800,000 tons of CO₂ annually from ammonia production in the Netherlands starting in 2026. Ørsted plans to capture and store a total of 430,000 tons of biogenic CO₂ per year beginning in 2026, including 280,000 tons per year from the wood chip-fired unit at the Asnæs power plant. The remaining 150,000 tons per year are to be captured from the straw-fired unit of the Avedøre power plant.

In parallel with the Northern Lights project, Norway is pursuing a flagship initiative called the Longship project, which covers the entire CCS value chain—from capture to transport to storage. It includes industrial CO₂ capture as well as the use of Northern Lights’ infrastructure for transport and storage.

Source: IWR Online, 11 Apr 2025