Northern Lights, the CO2 storage project of TotalEnergies, Equinor and Shell, has signed a commercial agreement with Yara. This agreement concerns the transport and storage of CO2 captured by Yara Sluiskil, an ammonia and fertilizer plant in the Netherlands. This trade agreement is the first of its kind in the world.
Storing CO2
In 2025, this agreement provides for the capture, compression and liquefaction of 800,000 tons of CO2 in the Netherlands. This CO2 will then be transported to the Northern Lights site for geological storage. The CO2 will be stored 2,600 meters below the seabed off the Norwegian town of Øygarden.
Børre Jacobsen, Managing Director of Northern Lights, says
“Yara, our first commercial customer, will fill the available capacity of Northern Lights Phase 1. This agreement will establish a market for CO2 transport and storage. From the beginning of 2025, we will ship the first tons of CO2 from the Netherlands to Norway. This will demonstrate that CCS is a climate tool for Europe.”
Northern Lights, an asset to the industry
This type of storage represents a decarbonization opportunity for the European Union’s heavy industry. The trade agreement is an important first step in this direction. In doing so, it lays the foundation for what could become international CO2 transport and storage. In addition, the agreement sets a new standard for European manufacturers seeking decarbonization solutions.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said of the agreement and the project
“The development of CO2 transport and storage services is crucial for the decarbonization of European industry: we are pleased to welcome Yara as the first business partner of Northern Lights, which will help support its decarbonization strategy. TotalEnergies aims to develop CO2 storage capacity of more than 10 million tons per year by 2030, both for its own facilities and for its customers, in line with its ambition to reach net zero by 2050, with the company.”
Svein Tore Holsether, CEO of Yara International, adds regarding the decarbonization benefits of the project:
“We urgently need to take steps to decarbonize the industry, and Yara is a forerunner in this area. I am very pleased to announce that we are now on track to eliminate CO2 emissions from our Sluiskil production facility. This will bring us one step closer to carbon-free food production and accelerate the supply of clean ammonia for fuel and power generation.”
For Northern Lights, the Phase 1 facilities are expected to be operational in 2024. They will allow the treatment of 1.5 million tons of CO2 per year. In view of the interest shown by industrialists, the development of additional capacities is being studied.
