Shell (SHEL.L), Equinor (EQNR.OL), and TotalEnergies (TTEF.PA) have announced a 7.5 billion Norwegian crowns ($713.66 million) investment to expand their flagship Northern Lights carbon storage project in western Norway. The decision follows the signing of a 15-year commercial agreement with Stockholm Exergi to transport and store 900,000 tonnes of carbon dioxide annually at the facility.
The expansion will more than triple Northern Lights’ CO2 injection capacity, increasing it to at least 5 million tonnes per year—roughly 10% of Norway’s annual emissions—according to Shell.
Carbon capture and storage (CCS) has been recognized as a crucial technology for reducing CO2 emissions, but only a few large-scale commercial projects exist. Norway launched its Longship project in 2020, which includes the Northern Lights facility as a key component.
Phase one of Northern Lights, completed in September 2023, can currently inject 1.5 million metric tons of CO2 per year, with the first deliveries expected later this year. The second phase will add an additional 3.5 million tonnes per year, with completion expected in the second half of 2028.
The investment will fund the construction of additional onshore storage tanks, pumps, a new jetty, injection wells, and additional CO2 transport vessels to support the expanded operations.
This investment also includes a grant of 131 million euros ($141.34 million) from the European Commission, further supporting the project’s development.