Equinor Expands Groundbreaking Northern Lights CCS Project with NOK 7.5 Billion Investment
Deal News | Mar 27, 2025 | Equinor ASA
Equinor ASA, together with Shell and TotalEnergies, is investing NOK 7.5 billion in the second phase of the Northern Lights Carbon Capture and Storage (CCS) project. The project, benefiting from support from the Norwegian Government and European Commission, exemplifies a successful public-private partnership model. The expansion, funded in part by the European Commission's Connecting Europe Facility, will boost total CO2 injection capacity from 1.5 to at least 5 million tonnes per year, and will build on both existing onshore and offshore infrastructure. The aim is to have phase two completed and operational by the second half of 2028, with Equinor remaining the technical service provider. The project is crucial for facilitating the energy transition and aiding hard-to-abate industrial sectors in decarbonizing their processes. Phase one operations are set to begin this summer, with CO2 expected from Heidelberg Materials cement factory and Hafslund Celsio’s waste-to-energy plant. Equinor is committed to expanding its CCS capabilities both in Norway and globally.
Sectors
- Carbon Capture and Storage (CCS)
- Energy Transition
Geography
- Norway – The main activities of the Northern Lights CCS project, including the receiving terminal and storage operations, are based in Norway.
- European Union – The European Commission has financially supported the project through its Connecting Europe Facility funding, indicating its European relevance.
Industry
- Carbon Capture and Storage (CCS) – The article focuses on the Northern Lights CCS project, which centers around the development and expansion of carbon capture, transportation, and storage capacity.
- Energy Transition – The article highlights efforts to decarbonize industrial sectors through the CCS technology, underscoring its role in the broader energy transition movement.
Financials
- 7.5 billion NOK – The total investment in the second phase of the Northern Lights CCS project.
- 131 million EUR (1.5 billion NOK) – The amount awarded by the Connecting Europe Facility from the European Commission for the project expansion.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Equinor ASA | Leader and Technical Service Provider | Company | Equinor is a major player driving the development and expansion of the Northern Lights CCS project. |
| Shell | JV Owner | Company | Shell is one of the co-owners of the Northern Lights CCS project, collaborating with Equinor and TotalEnergies. |
| TotalEnergies | JV Owner | Company | TotalEnergies is another co-owner of the Northern Lights CCS project, participating in the joint venture with Equinor and Shell. |
| Norwegian Government | Supporter | Government | The Norwegian Government has been supportive of the Northern Lights CCS project, facilitating its progress. |
| European Commission | Financial Supporter | Government | The European Commission has contributed to the project's financing through the Connecting Europe Facility grant. |
| Heidelberg Materials | CO2 Supplier | Company | Heidelberg Materials' cement factory in Brevik is one of the initial sources of CO2 for the Northern Lights project. |
| Hafslund Celsio | CO2 Supplier | Company | Hafslund Celsio's waste-to-energy plant in Oslo is another source of CO2 for the project. |