Aker BP and OMV have entered into a collaboration agreement for carbon capture and storage (CCS) and have been awarded a licence in accordance with the CO2 Storage Regulations on the Norwegian Continental Shelf (NCS).

“We expect CCS to play a key role in the transition to a low-carbon energy future, and the NCS holds significant potential for carbon storage. As a leading operator on the NCS, Aker BP is well positioned to take an active role in this area. This licence award provides us with an opportunity to explore both the technical and commercial potential of carbon storage. We look forward to collaborating with our partners to develop this into a sustainable and profitable business”, says Karl Johnny Hersvik, CEO in Aker BP.

The licence awarded to Aker BP and OMV is located in the Norwegian North Sea and will be named Poseidon. Aker BP (60%) and OMV (Norge) AS (40%) have interest in the licence, which will be operated by Aker BP. The licence comes with a work program which includes a 3D seismic acquisition and a drill or drop decision by 2025.

The Poseidon licence could potentially provide storage of more than 5 million tons CO2 per year. The intention is to inject CO2 captured from multiple identified industrial emitters in North-West Europe, including from Borealis’ various industrial sites in Europe.

Aker BP and OMV (Norge) AS have entered, as Poseidon partners, into a collaboration agreement with Höegh LNG to provide the marine CO2 infrastructure required to collect, aggregate and transport the CO2 from emitters on the European continent to the NCS. Höegh LNG has developed cost efficient marine CCS solutions based on its experience as one of the world’s largest and most technically advanced operators of LNG infrastructure that includes Floating Storage and Regasification terminals such as the three fast track floating LNG import terminals which were completed last year in Germany.

Aker BP is evaluating CO2 storage opportunities on the NCS as a potential new business opportunity and a potential decarbonisation lever for Aker BP in the longer term. The award of the Poseidon licence represents the first milestone to assess and mature CO2 storage resources, in support of the deployment of CCS within North-West Europe. Aker BP has in-depth expertise in reservoir management, drilling and wells and logistics offshore Norway.

OMV Group has a strong commitment to become net zero by 2050 and brings its extensive expertise in the Exploration & Production and Low Carbon Business into the collaboration.  The company has a strategic target to store 5 million tons of CO2 per year by 2030. OMV (Norge) AS has acquired subsurface competence from operated exploration activities and through partnerships in major producing fields on the NCS.