Norway’s Horisont Energy has partnered with Neptune Energy and E.ON through a Memorandum of Understanding (MoU), with the aim of developing a European CCS value chain. Through this MoU, Horisont Energi will strengthen the existing cooperation with E.ON and by bringing in Errai partner Neptune Energy, Horisont Energi will expand the cooperation towards the joint development of a European carbon capture and storage (CCS) value chain. The three energy companies aim to occupy a strong position in the CCS market, accelerating the transition towards carbon neutrality.
The MoU covers several areas, including the development, financing and financing of a complete value chain for CO2 management. If Horizon Energi and Neptune Energy’s CO2 storage application for the Errai project is awarded, it is intended to be the first joint project.
“Our cooperation with E.ON and Neptune Energy is already strong. Through this MoU we are expanding the cooperation to include three experienced energy companies. Together we will strengthen our position to establish a European CCS value chain business. In case of ‘awarding the Errai license, a possible direct participation of E.ON would further strengthen the commercial basis of this project,’ said Bjørgulf Haukelidsæter Eidesen, CEO of Horizont Energi.
Errai is planned as the first commercial CO2 project in Norway and will represent an important step in the industrialization of carbon capture and storage (CCS) as a competitive service. In December 2022, Horisont Energi and Neptune Energy submitted a joint application for the area identified in the Errai project. The addition of E.ON will strongly contribute to linking CO2 projects on the Norwegian Continental Shelf (NCS) with the development of the CO2 removal market in Europe. Pending legislative changes, the cooperation could also pave the way for a commercial carbon removal market based on biogenic CO2 sequestration.
A number of industries cannot be fully electrified and will therefore rely on CCS to meet net zero emissions requirements and meet the 1.5 degree target by 2050. These industries are found throughout Europe and include the production of steel, cement, various chemicals, pulp and paper. paper A complete CCS value chain will bring the solution to customers by offering a one-stop shop for CO2 capture and permanent storage in safe underwater reservoirs.
The Errai project is planned with an injection capacity of 4-8 million tonnes of CO2 per year in the first phase of development, with potential for more in later phases. The project includes an onshore terminal for the intermediate storage and processing of CO2, before transport for permanent storage in an offshore reservoir.
In November 2022, Horisont Energi signed a letter of intent with E.ON regarding sequestration services of more than one million tons of CO2 planned for E.ON’s European customer in 2030, from 2027 with a gradual increase.
The three companies will consider opportunities to cooperate as partners in different projects, but in the case of awarding a license to Horisont Energi and Neptune Energy, Errai could be the first possibility for E.ON to become a partner. A decision on Errai’s license application is expected in the first half of 2023.
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