Today, Equinor Low Carbon Solution AS has been offered an exploration licence for CO2 storage in the North Sea.

"The government is making it possible for Norway to receive large quantities of CO2 from Europe. The storage will take place on commercial terms, where those with emissions pay for the storage. This will be the fourteenth license for CO2 storage on the Norwegian continental shelf. This shows that there is interest in offering safe and secure storage of CO2 captured in Europe", said Minister of Energy Terje Aasland.

The exploration license is offered to Equinor Low Carbon Solution AS and is located in the North Sea. The license is offered with a binding work program with built-in milestones to ensure fast and efficient progress or relinquishment of the acreage  if the licensees do not complete the storage project.

Norway has great potential for storage on the Norwegian continental shelf. To this date, a total of 13 licenses have been awarded for storage of CO2 on the Norwegian continental shelf: one exploitation license and 12 explorations licenses. Today's offer is the fourteenth license for CO2 storage on the Norwegian continental shelf.

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).

Anyone who is 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 the economically viable storage of CO2 on the Norwegian continental shelf. Companies that have the necessary expertise and that have specific, industrial plans that entail a need for storage on a commercial basis can apply to the Ministry of Petroleum and Energy for a license 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 that are relevant for awards will be announced, among other things, to ensure competition.

In line with the regulations on transportation and storage of CO2 into subsea reservoirs on the continental shelf, the ministry normally expects to award an exploration license prior to awarding an exploitation license in a relevant area. Exploration licenses can be awarded to one or more competent companies. If a license is awarded to several companies, the ministry will, generally, appoint one of the companies as operator.

The award of exploration licenses will normally be done with a work program including one binding phase and subsequent conditional phases with decision points for the continuation or relinquishment. Relinquishing 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 of the area.

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