TotalEnergies and its partners, Equinor and Shell, announced a final investment decision Tuesday for the second phase of the Northern Lights carbon capture and storage (CCS) project. This expansion will increase the project's transport and storage capacity from 1.5 million to more than 5 million tons of carbon dioxide per year starting in 2028.

The first phase of Northern Lights is complete and ready to receive CO2 from industrial emitters. Operations are expected to begin this summer. The first CO2 transportation will occur by ship from Heidelberg Materials’ cement factory in Brevik, Norway. The CO2 will then undergo injection and permanent storage in a reservoir 2,600 meters below the seabed. This storage site is located off the coast of Øygarden, western Norway.

The second phase announced Tuesday represents an investment of NOK 7.5 billion (approximately $700 million). It leverages existing onshore and offshore infrastructures. This expansion includes new onshore storage tanks, pumps, a jetty, injection wells, and transport vessels. All these additions are expected to be completed for a startup by the second half of 2028.

This final investment decision for the second phase follows a 15-year commercial agreement. Northern Lights and the Swedish district energy provider, Stockholm Exergi, signed this agreement. It involves the cross-border transport and storage of 900,000 tons of biogenic CO2 emissions annually, starting in 2028.

Stockholm Exergi is the fifth company to commit to Northern Lights for the transport and storage of its CO2 emissions. The other companies include Heidelberg Materials and Celsio in Norway, Yara in the Netherlands, and Ørsted in Denmark. In addition, Northern Lights is in advanced discussions with several large European industrial customers to market the remaining storage capacity.

“I am delighted by the launch of Northern Lights phase 2, which represents a significant step forward for the CCS industry,” said Nicolas Terraz, President Exploration & Production of TotalEnergies. “Northern Lights can thus provide a concrete solution for the hard-to-abate industrial emitters in Europe, so that they can reduce their CO2 emissions and thereby secure their businesses’ sustainability.”

“The decision to expand our CO2 transport and storage services represents the next step in building a commercially viable CCS market in Europe,” said Tim Heijn, Managing director of Northern Lights JV. “It confirms Northern Lights’ commitment to offer an effective solution for companies to reduce emissions. The investment decision is an important milestone for our company, our customers and industry partners, governments and regulators. We have jointly been working hard to establish the CCS chain and make a real difference enabling Europe to achieve climate targets.”

The Northern Lights project is a pioneering initiative aimed at developing a large-scale CCS value chain in Europe. It will enable industrial emitters to capture CO2 emissions and transport them for permanent storage in a geological reservoir in the North Sea. The expansion into the second phase signifies the growing momentum and confidence in CCS technology as a crucial tool for mitigating climate change. The involvement of multiple major energy companies and industrial emitters underscores the collaborative effort required to achieve significant reductions in greenhouse gas emissions. The project's strategic location and existing infrastructure provide a strong foundation for its continued development and success.