Norway Allocates CO2 Acreage in North Sea to Six Companies

In a significant move towards carbon capture and storage (CCS) initiatives, six companies have received exploration licenses for the storage of CO2 across four designated areas in the North Sea. This development comes after authorities assessed applications from eight companies subsequent to the announcement of two suitable areas in March 2024.

The exploration licenses offer these companies the opportunity to investigate and potentially establish CO2 storage facilities in the North Sea, contributing to global efforts to mitigate climate change. The North Sea's geological characteristics make it an ideal candidate for CO2 storage, presenting an opportunity to leverage its natural resources for environmental benefit.

The issuance of exploration licenses represents a significant step forward in Norway's efforts to advance CCS technologies and establish itself as a leader in sustainable energy solutions. It also reflects a broader commitment to fostering collaboration between government agencies and private enterprises to address pressing environmental challenges while promoting innovation and economic growth in the energy sector.

The offers have been extended to six companies, namely:

•             Aker BP ASA

•             Equinor ASA

•             Lime Petroleum AS

•             OMV (Norge) AS

•             PGNiG Upstream Norway AS

•             Vår Energi ASA

Following established CO2 Storage Regulations, authorities have awarded acreage for CO2 storage for the sixth time. This demonstrates the ongoing implementation of a robust framework for this essential technology.

Norway’s Minister of Energy, Terje Aasland, stated that the government is committed to facilitating the transformation of CO2 storage into a commercially profitable and sustainable ocean industry in Norway. He emphasized that for the players to achieve success with their ambitious plans, the storage aspect of the value chain must also be established. Aasland further expressed that the awards announced that day mark a significant stride towards positioning Norway as a prominent figure in large-scale commercial CO2 storage for European emission sources.

Following Norway's regulations regarding the transportation and storage of CO2 in subsea reservoirs on the continental shelf, the ministry typically anticipates granting an exploration license before considering an exploitation license for a relevant area. These exploration licenses may be granted to one or multiple qualified companies. In cases where multiple companies receive licenses, the ministry usually designates one as the operator. The work program typically concludes with a requirement for the companies to make an investment decision regarding CO2 storage implementation. Subsequently, they are expected to submit a plan for development and operation (PUD) for the storage site or release the area.