Exploration Licenses Offered for CO2 Storage

The Norwegian Ministry of Petroleum and Energy has offered three companies exploration licenses for CO2 storage in one area in the North Sea. 

Carbon capture and storage (CCS) entails capturing, transporting and storing CO2 from sources such as power generation or industrial emissions.

The licensed companies are Sval Energi AS, Storegga and Neptune Energy Norway. The authorities had reviewed applications from five companies following announcement of one suitable acreage in January 2023.

The license is offered to each company with a binding work program with installed mileposts that ensure fast and efficient progress, or the return of the areas if the licensees do not carry out the storage project.

This is the fifth time acreage is being awarded for CO2 storage pursuant to the CO2 Storage Regulations, which relate to exploitation of subsea reservoirs on the continental shelf for storage of CO2 and transportation of CO2 on the shelf. These are the seventh acreages awarded for CO2 storage on the Norwegian continental shelf.

The Minister of Petroleum and Energy, Terje Aasland, said, “Carbon capture and storage of large amounts of CO2 is important to reach our climate goals and maintain industrial workplaces in Norway and Europe. Awarding new licenses allows Norway to contribute an important role in establishing a commercial large-scale carbon capture for European emissions sources.

“It is important that attractive storage areas are made available for companies with concrete industrial plans that involves a storage need. I am pleased to award these licenses to three new companies. We need more actors to strengthen the development of carbon capture as a new, important, commercial marine industry.”