Norway Launches Complete Industrial Chain for Carbon Capture and Storage

Norway has launched a major industrial project aimed at capturing, maritime transport, and geological storage of CO₂, mobilizing key energy players and significant public subsidies to ensure economic viability.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Norwegian government officially inaugurated this week the Longship industrial project, described as the world’s first integrated chain of carbon dioxide (CO₂) capture, transportation, and storage. This initiative, financially supported by the Norwegian state with 22 billion kroner (around €2 billion), is aimed at addressing emissions from industries challenging to decarbonize, such as cement production and waste incineration. Two primary industrial sites are initially involved in the project: the Heidelberg Materials cement plant in Brevik and the Hafslund Celsio waste incineration plant near Oslo. The process involves capturing CO₂ at source, liquefying it, transporting it by ship to the maritime terminal at Øygarden, near Bergen, and then injecting it deep beneath the seabed.

An Integrated Logistics Process

The first operational facility in the Longship project is the Brevik cement plant, owned by the German group Heidelberg Materials, capable of capturing approximately 400,000 tonnes of CO₂ annually. A second site, the Hafslund Celsio waste incineration plant, will begin operations in 2029 with an annual capture capacity of 350,000 tonnes. After capture, emissions are transported by ship to the Øygarden terminal. There, the CO₂ transits through infrastructure built under the Northern Lights project, managed by an energy consortium consisting of Equinor, Shell, and TotalEnergies, responsible for geological injection.

The Northern Lights facilities, operational since last year, currently have an annual storage capacity of 1.5 million tonnes of CO₂. This capacity is expected to gradually increase, reaching 5 million tonnes per year by 2028, enabling the site to accommodate emissions from other European industrial installations in the coming years.

Financing and Economic Model of the Project

The total investment required for the Longship project is estimated at around 34 billion kroner (approximately €3 billion), distributed between installation expenses and operating costs over an initial ten-year period. The substantial financial commitment by the Norwegian government, covering nearly two-thirds of the total cost, highlights the current economic complexity of carbon capture and storage (CCS) without public support.

This governmental backing directly addresses the economic challenge faced by industry: currently, it is generally more advantageous to purchase carbon emission allowances on the European Emissions Trading System (ETS) market than to invest in CCS technologies. Thus, the project’s profitability depends fundamentally on public subsidies and a scaling-up of storage capacities, which could generate economies of scale in the longer term.

Technological and Economic Challenges of CCS

Carbon Capture and Storage (CCS) remains a complex technology, involving industrial processes that are costly in terms of infrastructure. Globally, the total installed capacity for capturing CO₂ currently stands at around 50 million tonnes per year, equivalent to approximately 0.1% of annual global carbon emissions, according to the International Energy Agency (IEA). This illustrates the significant challenges industries face in adopting this technology without subsidies.

The Norwegian model precisely aims to address these challenges through implementing a complete and integrated industrial chain. Maritime transport of liquefied CO₂ over long distances to offshore sites represents a significant expense, though it allows centralization of flows to optimize geological storage management. This storage occurs by injecting CO₂ into a saline aquifer located approximately 110 kilometers offshore from the Norwegian coast, at a depth of 2,600 meters below the seabed.

European Interest and Prospects

The infrastructure established by Norway is also intended for use by other European industrial companies facing stringent regulatory objectives for carbon emission reductions. The planned expansion of Northern Lights to a storage capacity of 5 million tonnes annually could position it as a major European CCS hub, attracting industrial interest from other European countries subject to increasingly stringent regulatory constraints.

Several European companies, particularly from energy-intensive sectors such as cement production, steel, or chemical manufacturing, are already considering using Norway’s new geological storage infrastructure to meet their own climate obligations imposed by the European Union. Norway’s economic model, combining capture at source, maritime logistics, and offshore storage, may thus serve as a benchmark industrial solution within an evolving European regulatory context.

A bilateral framework governs authorization, transfer and accounting of carbon units from conservation projects, with stricter methodologies and enhanced traceability, likely to affect creditable volumes, prices and contracts. —
Carbon Direct and JPMorganChase have released a guide to help voluntary carbon market stakeholders develop biodiversity-focused projects while meeting carbon reduction criteria.
Japan and Malaysia have signed a preliminary cooperation protocol aiming to establish a regulatory foundation for cross-border carbon dioxide transport as part of future carbon capture and storage projects.
Green Plains has commissioned a carbon capture system in York, Nebraska, marking the first step in an industrial programme integrating CO₂ geological storage across multiple sites.
The price of nature-based carbon credits dropped to $13.30/mtCO2e in October as a 94% surge in September issuances far outpaced corporate demand.
Driven by the energy, heavy industry and power generation sectors, the global carbon capture and storage market could reach $6.6bn by 2034, supported by an annual growth rate of 5.8%.
Article 6 converts carbon credits into a compliance asset, driven by sovereign purchases, domestic markets, and sectoral schemes, with annual demand projected above 700 Mt and supply constrained by timelines, levies, and CA requirements.
The GOCO2 project enters public consultation with six industrial players united around a 375 km network aiming to capture, transport and export 2.2 million tonnes of CO2 per year starting in 2031.
TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.
Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.