Equinor has won a license to develop CO2 storage under the North Sea, Norway’s oil ministry said Jan. 11, part of a push to combat climate change.
Equinor is expected to submit a development plan this year, with parliament making a final decision in 2020 or 2021.
Proponents of carbon capture and storage (CCS) say countries need the technology to help fulfil pledges made around the time of the breakthrough Paris climate change agreement in 2015.
But environmentalists say is a costly technology that will perpetuate the status quo when rapid and deep cuts to energy use are needed to limit global warming.
The planned storage will be located near Norway’s largest oil and gas field, Troll, and aims to be able to receive CO2 from onshore facilities such as power or cement plants, to reduce emissions to the atmosphere.
Equinor and partners Shell and Total are working on FEED studies, which should provide more accurate cost estimates.
The preliminary estimates from 2016 showed it could cost between 7.2 billion crowns (US $852 million) to 12.6 billion crowns to establish a full CCS chain, including CO2 transportation by ships and the subsea storage.
Equinor said about 1.5 million tonnes of CO2 per year could be pumped for storage under the seabed during the first phase of the project, which could be later expanded.
If approved, the storage is expected to start operations in 2023 or 2024, said Gassnova, a governmental agency in charge of developing the CCS project.
($1 = 8.4487 Norwegian crowns)
Recommended Reading
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Ozark Gas Transmission’s Pipeline Supply Access Project in Service
2024-04-18 - Black Bear Transmission’s subsidiary Ozark Gas Transmission placed its supply access project in service on April 8, providing increased gas supply reliability for Ozark shippers.