Norway receives eight applications for two CO2 storage areas
SUMMARY
The two CO2 storage areas are located on the Norwegian continental shelf.
By Shardul SharmaThe Norwegian government announced on April 30 that eight companies had submitted applications for two CO2 storage areas located on the Norwegian continental shelf.
Norway’s energy ministry facilitates the allocation of storage permits, enabling interested parties to apply once they have developed a robust application basis. Following an evaluation process, the ministry announced two areas in the North Sea on March 6, 2024. By the conclusion of the application period on April 24, eight companies had submitted proposals.
The eight applicants are Aker BP, Equinor, Lime Petroleum, Northern Lights, OMV, PGNiG, Var Energi and Wintershall Dea. The ministry will now proceed to review the applications received and aims to award exploration licenses in the second half of 2024.
The government said it is pursuing an “active policy” to facilitate socio-economically profitable storage of CO2 on the Norwegian continental shelf. The policy allows industries with large emission sources to pay for permanent storage instead of releasing CO2 into the atmosphere.
Estimates show the Norwegian continental shelf has a theoretical storage capacity of 80bn tonnes of CO2. This corresponds to around 1,600 years of Norwegian CO2 emissions at current levels, the government said.
“Norway is at the forefront of efforts to promote commercial CO2 storage. By facilitating more storage permits, we are strengthening our role as a force for climate-friendly initiatives both nationally and internationally, while creating new opportunities for growth and employment in Norway,” said minister of energy Terje Aasland.
