The Northern Lights carbon storage joint venture won a transport and storage contract to ship captured CO2 for permanent sequestration in Western Norway from Yara International’s Netherland’s-based Sluiskil ammonia production facility, following an initial deal signed between the two parties in August 2022
Yara International aims to reduce its annual CO2 emissions by 800,000 tonnes from the ammonia production at Yara Sluiskil facility, one of the world’s largest ammonia and mineral fertiliser plants, located on the Ghent-Terneuzen canal, a Dutch waterway that opens into the North Sea.
Northern Lights, a joint venture created by energy majors Shell, Equinor and TotalEnergies, will ship liquefied CO2 from Yara Sluiskil to Øygarden in Norway, storing CO2 in onshore tanks at Øygarden, prior to injection into an offshore saline aquifer via pipeline for permanent and safe storage 2.6 km below the seabed.
Three dedicated Northern Lights LCO2 carriers are currently under construction at China’s Dalian Shipyard.
Operations will begin in 2025 and continue for 15 years, during which Yara intends to remove approximately 12M tonnes of CO2 from production at the Sluiskil facility.
Yara International chief executive Svein Tore Holsether called it “a milestone for decarbonising hard-to-abate industry in Europe and for Yara it’s an important step towards decarbonising our ammonia production, product lines and the food value chain at large.”
The company sees carbon capture and storage as vital to large-scale, cost-efficient decarbonisation and believes the technology is compatible with existing European production infrastructure, especially in the case of ammonia and fertiliser production.
The Northern Lights deal will be one of the first major offshore CO2 storage deals, something Yara International hopes will kickstart the commercial market for CCS in Europe.
Mr Holsether called for more state support to create opportunities for similar projects to move forward.
“To succeed with the green transition, we need strong partnerships and support from governments and the EU. CCS is an important part of the solution. Together, we can significantly reduce greenhouse gas emissions and take a further step closer to transforming our industry,” he said.
Northern Lights managing director Børre Jacobsen said, “Norway has the potential to provide Europe with significant CO2 storage, which will help the EU to reach its climate targets. It is a safe and efficient way to handle emissions, and this agreement will demonstrate that.”
Riviera Maritime Media’s Offshore Support Journal Conference, Middle East will be held 6 December 2023 in Dubai, UAE. Use this link for further information and to register your interest
© 2023 Riviera Maritime Media Ltd.