Noway grants carbon storage licenses to six companies

The Norwegian Ministry of Energy has proposed four new exploration licenses for CO2 storage on the Norwegian continental shelf to Equinor, Vår Energi, OMV (Norge), Lime Petroleum, Aker BP and PGNIG Upstream Norway.

The four proposed licenses are in the North Sea. Two of the licenses are offered to Equinor.

One license is offered to a group consisting of Vår Energi ASA, OMV (Norge) and Lime Petroleum, and one license is offered to a group consisting of Aker BP and PGNiG Upstream Norway.

The licenses are offered with a binding work program which includes milestones ensuring rapid and efficient progression or return of areas if the licenses do not deliver the storage project.

“The government is committed to helping CO2 storage become a commercially profitable and sustainable ocean industry in Norway. For players to succeed in their ambitious projects, the storage part of the value chain must also be in place.

“Today’s awards are therefore another important step towards establishing Norway as a major player in large-scale commercial CO2 storage for European emissions sources,” said Terje Aasland, Norwegian Minister Energy.

Aasland added that the awards were given to companies that have developed good industrial plans.

Proposed areas for CO2 storage (Credit: Norwegian Offshore Directorate)

In accordance with Norwegian regulations on the transport and storage of CO2 in underwater reservoirs on the continental shelf, the ministry normally expects to grant an exploration license before granting an exploitation license in a relevant area .

Research permits may be awarded to one or more competent companies. If a license is granted to more than one company, the ministry will generally designate one of the companies as the operator.

The work program will normally end with the requirement that companies make an investment decision for the realization of CO2 storage, and then submit a development and operation plan (PUD) for the storage location or abandon the area.