Northern Lights JV pens first CO2 transportation deal with Yara

Norway’s Northern Lights, a joint venture owned by Equinor, Shell, and TotalEnergies, has signed what it says is the world’s first commercial agreement on cross border CO2 transportation and storage with Yara.

According to a joint statement, Yara and Northern Lights have agreed on the main commercial terms to transport CO2 captured from Yara Sluiskil, an ammonia and fertilizer plant in the Netherlands, and permanently store it under the seabed off the coast of western Norway.

When the final contractual details are firmed up, this would be the first ever cross border CO2 transport and storage agreement, the partners claim.

It would set the standard for other industrial companies across Europe looking to use Northern Lights – and other emerging CO2 transport options and stores in the North Sea – as a key part of their decarbonization strategies, the statement said.

800,000 tonnes of CO2

Yara Sluiskil has already cut 3.4 million tonnes of CO2 emissions per year from its ammonia and fertilizer production since 1990, according to the statement.

Significant volumes of carbon dioxide are reused in greenhouse plant production, as an ingredient for carbonated drinks and for other purposes such as urea and AdBlue, a diesel product to reduce harmful gases from diesel engines.

From early 2025, 800,000 tonnes of pure CO2 will be captured, compressed and liquefied in the Netherlands, and then transported to the Northern Lights store at 2,600 meters under the seabed off the coast of Øygarden.

LNG-powered CO2 carriers

Northern Lights is the transport and storage part of the Longship project, funded 80 percent by the Norwegian government.

The Phase 1 installations are scheduled to come on stream in 2024, with the ability to handle 1.5 million tons of CO2 per year.

Last year, China’s Dalian Shipbuilding Industry (DSIC) won a contract to build two LNG-powered CO2 carriers which will serve the Northern Lights JV.

Besides LNG power, the 7,500 cbm vessels would feature a wind-assisted propulsion system and air lubrication in order to reduce carbon intensity by around 34 percent compared to conventional systems, the JV previously said.

- Advertisements -

Most Popular

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

Adnoc buys stake in NextDecade’s Rio Grande LNG project

UAE’s Adnoc has purchased an 11.7 percent stake in the first phase of NextDecade's Rio Grande LNG export terminal...

Tellurian updates on Driftwood LNG construction work

US LNG terminal developer Tellurian released the latest construction update for the first phase of its Driftwood LNG terminal...

More News Like This

TotalEnergies supplies LNG cargo to PetroVietnam Gas

PetroVietnam Gas, a unit of state-owned PetroVietnam, has received a liquefied natural gas cargo from a unit of France's...

UK’s Dragon LNG terminal offers capacity from September 2029

The UK’s Dragon LNG terminal in Milford Haven has invited market participants to express an interest in capacity at...

Singapore LNG bunkering volumes jump

Singapore's LNG bunkering sales jumped in the first four months of this year, reaching a new record, according to...

Japan’s MOL charters LPG carrier duo to TotalEnergies

Japan’s shipping firm MOL said on Thursday it has signed a charter deal for two 88,000-cbm LPG carriers with...