Northern Lights JV inks CO2 deal with Orsted

Norway’s Northern Lights, a joint venture owned by Equinor, Shell, and TotalEnergies, has signed a CO2 transport and storage deal with Danish energy firm Orsted.

The ten-year transport and services agreement (TSA) includes storing 430,000 tonnes biogenic CO2 emissions per year from two power plants in Denmark, according to a statement by Northern Lights.

Orsted won on Monday public funding from the Danish Energy Agency under the first Danish tender of the CCUS Fund to develop a CO2 capture hub for the biomass power stations Asnæs and Avedore.

The facilities will capture and liquefy biogenic CO2 and Northern Lights will transport the liquefied CO2 by ship for permanent offshore storage below the North Sea.

Prior to the injection into the offshore reservoir via pipeline, Northern Lights will first store the liquefied CO2 from the Kalundborg hub in Denmark at its receiving terminal in Oygarden.

China’s Dalian Shipbuilding Industry (DSIC) is building two LNG-powered CO2 carriers, each with a cargo size of 7,500 cbm and a length of 130 meters, for Northern Lights.

Northern Lights said this new deal represents a “major milestone” for the JV and is an “essential step” for creating a commercial market for CCS in Europe.

“Orsted is our second commercial customer who, together with Yara, gives us the opportunity to further utilize the capacity at our storage site below the North Sea,” Borre Jacobsen, managing director of Northern Lights, said.

“From 2026 Northern Lights will be shipping the first cargo of biogenic CO2 from Denmark to Norway, which shows that CCS is a realistic tool that contributes to reach the global climate targets,” Jacobsen said.

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