Norway’s Ministry of Petroleum and Energy has offered one more license for carbon dioxide storage covering five blocks in the North Sea.
A consortium of Neptune Energy Norge AS, Storegga Norge AS and Sval Energi AS is now expected to conduct seismic studies and draw up a field development plan, the ministry said in a press release last week.
The project straddles blocks 16/4, 16/5, 16/7, 16/8 and 16/11 on the Norwegian continental shelf, according to a work program published by the Norwegian Petroleum Directorate (NPD). The area is east of the Sleipner East camp, according to the ministry.
“This is the fifth time that an area has been awarded for CO2 storage under the CO2 Storage Regulation. These are the seventh areas awarded for CO2 storage on the Norwegian Continental Shelf” , said the NPD.
The regulations were approved on December 5, 2014 “to contribute to sustainable energy generation and industrial production by facilitating the exploitation of underwater reservoirs on the continental shelf for the environmentally safe storage of CO2 as a measure to counter climate change”, as stated in the official text. .
Petroleum and Energy Minister Terje Aasland said in a statement about the latest license: “Carbon capture and storage of large amounts of CO2 is important for achieving our climate goals and maintaining industrial jobs in Norway and Europe”.
“The awarding of new licenses allows Norway to play an important role in establishing large-scale commercial carbon capture for European emission sources,” added Aasland.
Norway has set itself the goal of reducing global warming emissions by at least 50 percent by 2030 compared to 1990 levels towards a 90-95 percent reduction by 2050. The country The Nordics emitted 49.1 million metric tons of CO2 equivalent in 1990, according to the Climate and Environment Ministry’s Climate Roadmap outlining the targets, published in June 2022.
Pre-development of the project is expected to take four years, before a final investment decision, according to the NPD work program. Sval Energi has a 40 percent stake in the consortium as operator, while Neptune Energy Norge and Storegga Norge each have 30 percent, according to the program document.
“The license is offered with a binding program of work with installed kilometers that ensure fast and effective progress, or the return of the areas if the licensees do not carry out the storage project,” he said the ministry
“The awarding of exploration licenses will normally be done with a work program that includes a binding phase and subsequent conditional phases with decision points for continuation or waiver,” the ministry added. “The waiver allows other stakeholders with storage needs to apply for area awards.
“The work program will normally end with a demand that companies make an investment decision on the realization of a CO2 storage, and then submit a plan for the development and operation of the storage location or relinquishment of the area “.
Aaslan said: “It is important that attractive storage areas are available for companies with specific industrial plans involving [sic] a need for storage.”
“We need more players to strengthen the development of carbon capture as a new major commercial maritime industry,” the minister said.
Norway has been considered a leader in climate action, but has faced criticism for its continued development of fossil fuels.
On May 11, the Ministry of Petroleum and Energy opened the latest round of licenses for oil production on the country’s continental shelf, with an option for the state’s participation in project rights.
In 2020, the Supreme Court ruled against a lawsuit by environmental and youth organizations to stop further oil drilling in the Arctic.
David Boyd, the United Nations special rapporteur on environment and human rights, had called on Norway to end the exploration of oil and gas reserves and the expansion of hydrocarbon infrastructure.
“The Norwegian paradox is that its leadership in some aspects of climate action is undermined by its continued dependence on a large fossil fuel industry,” Boyd wrote in The Guardian newspaper on November 12, 2019 after ‘an official visit to Norway.
“Norway, as one of the richest nations in the world and a major producer of oil and gas, has a responsibility to lead efforts in mitigation, adaptation and, at least to some extent, compensation for losses and damages caused by these products”.
To contact the author, please email jov.onsat@rigzone.com
