Phase 2 of Northern Lights CCS Project Gets Green Light

Equinor and its partners are moving forward with the second phase of the Northern Lights carbon capture and storage (CCS) project in Norway.

Operator Equinor announced on 27 March that the Northern Lights joint venture (JV), which also includes Shell and TotalEnergies, had reached final investment decision (FID) on the $713 million second phase of the CCS project after signing a commercial agreement with Stockholm Exergi to transport and store 900,000 tonnes of biogenic CO₂ annually for 15 years.

The first phase of the Northern Lights Phase 1 project, valued at $710 million, reached FID in May 2020. Northern Lights is part of the larger Norwegian full-scale Longship CCS project that includes capturing CO₂ from industrial sources and shipping liquid CO₂ to the terminal in Øygarden, near Bergen, Norway.

In February, the Northern Lights JV announced the arrival of the Northern Pioneer in Stavanger. One of four sister vessels custom-designed for shipping liquid CO₂, it will be capable of transporting 8,000 tonnes of liquid CO₂ between customer facilities and the receiving terminal.

Source: TotalEnergies

From Øygarden, the liquefied CO₂ will be piped to the Aurora saline aquifer 2,600 m under the seabed near the Troll field in the North Sea.

Phase 1 is expected to receive first CO2 via ship this year from Heidelberg Materials’ cement factory in Brevik, Norway, at the receiving terminal near Kollsnes on Norway’s west coast. Northern Lights will also store CO₂ from the Hafslund Celsio waste-to-energy plant in Oslo. The Norwegian government covered about 80% of the cost for the first phase of the Northern Lights project.

“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,” Equinor CEO Anders Opedal said in a news release.

Nicolas Terraz, president of exploration and production at TotalEnergies, said in a news release that Northern Lights will “provide a concrete solution for the hard-to-abate industrial emitters in Europe.”

According to Equinor, the first phase of the Northern Lights project aimed to demonstrate the feasibility of a new business model, solutions, and operations through collaboration among authorities, customers, and project partners. Phase 1 capacity of 1.5 million tonnes per year (Mtpa) of CO₂ is fully booked.

Source: TotalEnergies

Phase 2 of the development will increase the total injection capacity from 1.5 Mtpa of CO₂ to at least 5 Mtpa of CO₂. Phase 2 builds on existing onshore and offshore infrastructure. It includes additional onshore storage tanks, a new jetty, and additional injection wells. The second phase is expected to be completed and ready to receive CO₂ delivery from Stockholm Exergi in the second half of 2028.

The expected $713 million investment for the second phase includes about $141 million from the Connecting Europe Facility funding scheme approved by the European Commission in 2024.

Equinor is the technical service provider for both phases and is responsible for development, construction, and operation on behalf of the Northern Lights JV. Equinor, Shell, and TotalEnergies each hold 33.3% interest in the project.

Monitoring Stored CO₂
The Northern Lights JV announced on 18 March that it had signed an agreement with independent research foundation NORSAR to monitor the Aurora CO₂ storage reservoir in the North Sea.

Northern Lights Managing Director Tim Heijn said in a release that continuous monitoring of CO₂ injection and seismic activity will support safe and permanent storage and reliable operations.

NORSAR plans to establish and operate a permanent monitoring station near Bergen to detect and analyze seismic activity related to CO₂ injection in the Northern Lights JV’s Aurora reservoir. This data will support Northern Lights in maintaining operational integrity and ensuring safe injection and permanent storage of more than 100 million tonnes of CO₂, according to the JV.

“The agreement between NORSAR and Northern Lights provides a cost-effective solution for monitoring CO₂ storage with technology developed in Norway,” Norwegian Minister of Energy Terje Aasland said in a news release.

NORSAR CEO Anne Strømmen Lycke said in the release that commercial CO₂ storage is a new business area with immense potential for Norway.

“It is crucial to build trust from Day 1. This monitoring will also reassure authorities and the public that the storage site maintains its integrity throughout both the injection and long-term storage phases,” she said.