Two companies have been offered exploration permits for CO2 storage acreage in the Norwegian sector of the North Sea.
Both Wintershall Dea and CapeOmega secured permits from the Norwegian Petroleum Directorate (NPD) following an application process opened in April 2022.
Oil and Energy Minister Terje Aasland said the licence was awarded as the two “have matured a good project for the storage of CO2,” adding that there continues to be interest from industry in further advertising for land on the Norwegian continental shelf.
In this case the awards cover two areas to the east and west of the Troll field.
Wintershall Dea will act as operator of the Luna licence, located 75 miles west of Bergen, and estimated to hold a CO2 injection capacity of up to 5 million tonnes per year.
This is the third time acreage has been awarded for CO2 storage following the launch of formal regulations, and the fourth acreage awarded to store CO2 on the Norwegian continental shelf.
NPD said the permit is offered in tandem with a binding work programme that will ensure “rapid and efficient progress” or return of the licence if project development halts.
The four-year plan allots one year to 3D seismic acquisition, reprocessing the development of 3D reservoir models, as well as studies on potential leakage paths for injected CO2.
The explorers must then make a decision to drill a wildcat or appraisal well, or return the licence.
Two years are apportioned to the drilling of wildcat, appraisal and/or injection wells, as well as conceptual field development studies.
One final year will be allowed for companies to prepare and submit a plan for development and operation (PDO) to regulators and commit to a final investment decision.
“This award marks a new chapter of our activities in Norway. With our proven track record, our subsea expertise and our ambition to contribute to Europe’s climate goals, we are ideally placed to help deliver the infrastructure Norway needs to become a hub for European carbon storage,” said Hugo Dijkgraaf, Chief Technical Officer at Wintershall Dea.
CapeOmega CEO Evy Glørstad added: “As partner, we are also willing to fast-track the development in a new partnership. We look forward to maturing Luna with Wintershall Dea and continue investing in decarbonisation.”
The award follows another partnership struck between national energy group Equinor and Wintershall Dea, who will work together to develop a larger CO2 value chain.
By 2032 the two plan to build a near 560-mile long pipeline to connect a CO2 collection hub in Northern Germany and storage sites in Norway.
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