CO2 storage in Norway: A new course for industrial emissions

Norway launches the world's first commercial CO2 transport and storage service. The project could transform emissions management for hard-to-decarbonize industries.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

Norway inaugurates a pioneering infrastructure designed to reduce carbon dioxide emissions from industry.
The project, known as Northern Lights, represents the first commercial large-scale CO2 transport and storage initiative.
Carbon dioxide is captured and liquefied, then transported by ship to an onshore terminal in Øygarden, Norway.
From there, the CO2 is transported via a pipeline to be buried in a saline aquifer more than 2,600 meters below the seabed of the North Sea.
With an initial capacity of 1.5 million tonnes per year, expandable to 5 million, the project aims to meet the needs of heavy industries seeking to reduce their carbon footprint.
This process, often referred to under the acronym CCS (Carbon Capture and Storage), is particularly relevant for sectors that are difficult to decarbonize, such as cement and steel.
The development of these storage capacities is essential as part of global strategies to meet CO2 emission reduction targets.

Economic challenges and limits of CO2 capture

CO2 capture and storage technology, although encouraged by various international bodies, still faces high costs.
Indeed, the installation and operation of the infrastructures required for its deployment are complex and require substantial funding.
In the case of the Northern Lights project, the Norwegian government is covering 80% of the costs, a contribution that underlines the importance of public support for the viability of these initiatives.
The exact amount of the investment has not been disclosed, but it represents a significant proportion of Norwegian public spending on energy innovation projects.
Manufacturers are often reluctant to adopt these technologies because of the prohibitive costs, preferring to buy CO2 emission allowances on the European markets.
In comparison, CCS solutions represent a considerable investment for companies whose margins are often tight.
The International Energy Agency (IEA) estimates that to contain global warming to 1.5°C, it will be necessary to capture and store at least one billion tonnes of CO2 per year by 2030.
At present, global capture capacity stands at just 50.5 million tonnes, or 0.1% of annual global emissions.

Industrial partnerships and cross-border projects

In addition to meeting the needs of Norwegian manufacturers, Northern Lights has signed agreements with companies outside the country’s borders.
The Yara Group, a fertilizer specialist, and Ørsted, a major energy player, have agreed to use Northern Lights’ services to bury CO2 from their facilities in the Netherlands and Denmark.
This cross-border dimension demonstrates the project’s flexibility in integrating into a European, and even global, dynamic to reduce industrial emissions.
The project is part of the wider Longship initiative, which benefits from substantial government subsidies.
Longship also includes the installation of CO2 capture systems at key industrial sites in Norway, such as the Heidelberg Materials cement plant in Brevik.
However, delays and cost overruns have affected the implementation of other planned installations, notably the Oslo waste treatment plant operated by Hafslund Celsio.

Challenges and criticisms of the energy industry

Although Northern Lights represents a technological breakthrough, it is not universally acclaimed.
Critics point to the risk of leakage during subsea storage, as well as the potential impact on investment in renewable energies.
Some organizations, such as Greenpeace Norway, express concern about the real intentions of the oil companies involved in the project, arguing that CCS could be used as an excuse to prolong the exploitation of fossil fuels.
These accusations, widely relayed by environmental organizations, highlight a persistent debate surrounding technologies aimed at limiting emissions without reducing oil and gas extraction.
Yet the industry sees CCS as a pragmatic solution for sectors where decarbonization is difficult to achieve with renewables alone.
Norway, with its oil and gas infrastructure already in place, has the assets to become a world leader in CO2 storage, exploiting its natural resources to meet climate challenges while retaining its central role in the energy sector.

Tesla retains the top position in the global battery storage market, but Sungrow moves within one point, revealing intensifying rivalries and a rapid reshaping of regional dynamics in 2024.
Lyten announces an agreement to acquire most of Northvolt's assets in Sweden and Germany, bringing new industrial prospects to the energy storage sector in Europe.
Energy Vault secures an exclusive $300 mn commitment to support the creation of Asset Vault, a subsidiary dedicated to building and operating 1.5 GW of energy storage projects across several continents.
Energy Vault confirms the acquisition of the Stoney Creek storage project, marking its first major operation in the Australian market, following approval from local authorities on foreign investments.
GoldenPeaks Capital strengthens its position on the Polish energy storage market with the acquisition of two battery systems, totalling 54 MW, secured by seventeen-year capacity contracts.
SolarMax Technology has signed a key contract to deliver a 430 MWh battery energy storage system in Texas, strengthening its presence in the large-scale US energy solutions market.
Shanghai Sermatec Energy Technology Co., Ltd. announces an agreement to supply more than 430 MWh of energy storage in Bulgaria, marking a new step in the expansion of Chinese solutions in the European market.
Pulse Clean Energy raises GBP220mn ($292.3mn) from six international banks to fund six new battery sites, supporting the UK strategy to expand energy storage and transition to a more resilient network.
According to Ember, the profitability of battery storage on Indian wholesale markets is rising sharply, driven by the rapid decline in costs and high volatility in electricity prices.
Pacific Green has signed a commitment agreement with ZEN Energy for the management of 1.5GWh of battery storage across three major sites in Australia, strengthening its portfolio and accelerating the market launch of its projects.
More than 100,000 residential batteries coordinated by Sunrun delivered 360 megawatts to the California electricity grid, setting a new record for distributed power during an exercise supervised by local authorities.
Princeton NuEnergy receives a SuperBoost grant to industrialise its direct lithium-ion battery recycling process, strengthening the resilience of the U.S. supply chain and national security objectives.
EnBW plans to install in Philippsburg one of Germany’s most powerful battery storage systems, with a capacity of 800 MWh, supporting the transition of the former nuclear site into a key player in grid flexibility.
Eos Energy Enterprises reaches a milestone with record quarterly revenue and strengthens its position in energy storage, supported by a major fundraising and the expansion of its commercial pipeline.
AGL Energy Limited invests 800 mn USD in a 500 MW battery in New South Wales, aiming for commissioning in 2027 and strengthening its position in the flexible assets market.
AGL launches a community battery project totalling 11.5 MW, aiming to reduce electricity costs for more than 10,000 low-income households in South Australia through a public-private partnership and public financial support.
Nearly 1 GWh of storage capacity has just been added to the Texas grid by esVolta, meeting critical needs in Dallas and western parts of the state for the 2025 summer peak.
Arevon has launched operations at the Peregrine Energy Storage project in San Diego, with a capacity of 200 MW for 400 MWh and a $300mn investment to strengthen California’s energy security during periods of peak demand.
H2G Green Limited and Singapore’s Agency for Science, Technology and Research launch a partnership to industrialise a process transforming biochar into hard carbon, essential for sodium-ion and lithium-ion battery production. —
Avangrid has completed a strategic pilot with Tyba to optimise battery site selection, simulating operations at over 2,400 locations to refine profitability and the management of energy storage on US power markets.
Consent Preferences