Investing 7.5 billion in expansion of the groundbreaking Northern Lights CCS-project

Equinor, Shell and TotalEnergies have made a final investment decision to progress phase two of the Northern Lights development. The decision was made after signing a commercial agreement with Stockholm Exergi to transport and store up to 900.000 tonnes of biogenic CO2 annually for 15 years.
Customer commitment is a decisive part of realizing a carbon capture, transportation and storage (CCS) value chain.
“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. 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,” says Anders Opedal, CEO of Equinor.

The investment by the Northern Lights JV owners Equinor, Shell and TotalEnergies is 7.5 billion NOK. This includes the award of €131 million (ca 1,5 billion NOK) from the Connecting Europe Facility (CEF) funding scheme, approved by the European Commission last year.
Phase two of the development will increase the total injection capacity from 1.5 million tonnes of CO2 per year (Mtpa) to at least 5 Mtpa. The expansion through phase two builds on existing onshore and offshore infrastructure and includes additional onshore storage tanks, a new jetty, and additional injection wells. This development phase is expected to be completed and ready for operation in the second half of 2028. Equinor will remain the technical service provider (TSP) for phase two, responsible for development, construction and operation on behalf of the partnership.
The first phase of the Northern Lights project aimed to demonstrate feasibility of a new business model, solutions, and operations through collaboration among authorities, customers and project partners. With strong support by the Norwegian government’s Longship initiative, phase one is fully booked. Northern Lights is prepared to receive CO2 from emitters, offering a secure and permanent storage solution for CO2.

“I am very pleased that the partners in Northern Lights have progressed to the second phase of the Northern Lights project. As the recently published European Clean Industrial Deal makes clear, large-scale carbon capture, transport and storage will be crucial in the energy transition as it offers a solution for hard-to-abate industrial emitters to decarbonize their processes, says Irene Rummelhoff, executive vice president for Marketing, Midstream and Processing in Equinor.
Phase one operations are planned for this summer, with CO2 from Heidelberg Materials’ cement factory in Brevik expected to arrive at the receiving terminal near Kollsnes on Norway’s west coast. Additionally, Northern Lights will store CO2 from the Hafslund Celsio waste-to-energy plant in Oslo, as part of the Longship project.
Equinor is already one of the largest CCS developers worldwide, with ambitions to further mature storage licenses both on the Norwegian continental shelf and globally with expected nominal equity return as previously communicated. Equinor is working on several CCS projects in Europe and the US. These projects require ongoing collaboration between governments, industry, customers and regulators to enable large-scale CCS solutions.
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