At the end of the application period on April 24, the Norwegian Ministry of Energy had received applications for CO2 storage licenses, from 8 companies.
The Ministry will now process the applications received and aims to award exploration licenses in the second half of 2024.
Applicants:
Aker BP ASA
Equinor Low Carbon Solution AS
Lime Petroleum AS
Northern Lights JV DA
OMV (Norway) AS
PGNiG Upstream Norway AS
Vår Energi ASA
Wintershall Dea Norge AS
Background
Activities aimed at surveying and exploring for subsea reservoirs for the storage of CO2, as well as exploitation, transport, and storage of CO2 in such reservoirs on the Norwegian continental shelf are subject to the regulations on transportation and storage of CO2 into subsea reservoirs on the continental shelf (Regulation 5th December 2014 no. 1517).
Any company conducting such storage operations needs a permit in accordance with the regulations. In addition, on February 20th, 2020, the Petroleum Safety Authority established regulations on safety and the working environment for the transport and storage of CO2 on the continental shelf (the CO2 Safety Regulations).
The Norwegian government are facilitating socio-economically profitable storage of CO2 on the Norwegian continental shelf. Companies with the necessary expertise and specific, industrial plans that entail a need for storage on a commercial basis can apply to the Ministry of Energy for a licence adapted to the needs of the business. The government will conduct a predictable, efficient, and flexible process to award industrial players access to relevant storage options. Areas relevant for awards will be announced publicly. One reason for this is to ensure competition.
In line with the regulations on transport and storage of CO2 into subsea reservoirs on the continental shelf, the ministry normally expects to award an exploration licence prior to awarding an exploitation licence in a relevant area. Exploration licences can be awarded to one or more competent companies. If a licence is awarded to several companies, the ministry will in general appoint one of the companies as operator.
The award of exploration licences will normally include a work program, including one binding phase and subsequent conditional phases with decision points for the continuation or relinquishment of the area in question. Relinquishing an area allows other stakeholders with storage needs to apply for awards of the area. The work program will normally end with a demand that the companies make an investment decision on the realization of CO2 a storage, and that they then submit a plan for development and operation (PUD) for the storage location, or relinquish the area.
So far, seven licenses have been awarded for CO2 storage offshore Norway, six in the North Sea and one in the Barents Sea. Most recently, Sval Energi, Storegga Norway and Neptune Energy Norway secured an exploration permit located east of the Sleipner Øst field in what was the fifth time acreage was awarded.
source: regjeringen.no, offshore-energy.biz
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