Regulatory News:
Equinor, Shell and Total (Paris:FP) (LSE:TTA) (NYSE:TOT) have
decided to invest in the Northern Lights project in Norway's first
exploitation licence for CO storage on the Norwegian Continental
Shelf. Plans for development and operation have been handed over to
the Ministry of Petroleum and Energy.
"The Northern Lights project could become the first step to
develop a value chain for Carbon Capture and Storage (CCS), which
is vital to reach the global climate goals of the Paris Agreement.
Development of CCS projects will also represent new activities and
industrial opportunities for Norwegian and European industries,
says Anders Opedal, executive vice president for Technology,
Projects & Drilling at Equinor.
The investment decision is subject to final investment decision
by Norwegian authorities and approval from the EFTA Surveillance
Authority (ESA).
"This unique project opens for decarbonisation of industries
with limited opportunities for CO(2) -reductions. It can be the
first CO(2) storage for Norwegian and European industries and can
support goals to reduce net greenhouse gas emissions to zero by
2050", says Opedal.
The investment decision concludes the study phase during which
the Equinor, Shell and Total worked closely with Norwegian
authorities to conduct engineering studies and project planning,
drill a confirmation well and develop the necessary agreements.
Following the investment decision, the partners intend to establish
a joint venture company.
The initial investments will total almost NOK 6.9 billion. The
project will generate much needed jobs for Norwegian industry, with
an estimated 57 percent of the investment going to Norwegian
contractors.
"CCS is a crucial technology to help society and economies
thrive through the energy transition. Shell is active in all parts
of the CCS value chain and Northern Lights further strengthens our
global CCS portfolio. We appreciate the leadership shown by the
Norwegian Government to accelerate the development of CCS value
chains and believe that the Northern Lights CO(2) transport and
storage solution has the potential to unlock investment in capture
projects across Europe," says Syrie Crouch, vice president for CCUS
in Shell.
"Total is proud to be part of this first commercial-scale carbon
transportation & storage project in Europe. Together with our
industrial partners, under the leadership of Norway, we've managed
to conclude successfully the technical studies and we have achieved
an important step towards the realization of the project. Today,
more than ever, we are willing to maintain our efforts on the
development of the CCS technology which is needed to reach the EU
carbon neutrality goals and is fully part of Total's new Climate
Ambition to get to Net Zero by 2050", says Philippe Sauquet,
president Gas Renewables & Power at Total.
Interest from European authorities and 3(rd) parties
The project will be developed in phases. Phase 1 includes
capacity to transport, inject and store up to 1.5 million tonnes of
CO(2) per year. Once the CO(2) is captured onshore by industrial
CO(2) -emitters, Northern lights will be responsible for transport
by ships, injection and permanent storage some 2,500 metres below
the seabed.
The CO(2) receiving terminal will be located at the premises of
Naturgassparken industrial area in the municipality of Øygarden in
Western Norway. The plant will be remotely operated from Equinor's
facilities at the Sture terminal in Øygarden and the subsea
facilities from Oseberg A platform in the North Sea.
The facility will allow for further phases to expand capacity.
Investments in subsequent phases will be triggered by market demand
from large CO(2) emitters across Europe.
Equinor, on behalf of the partners, has already signed
non-binding Memoranda of understanding with several European
companies for the development of value chains in carbon capture and
storage. Binding commercial agreements will depend on positive
investment decision from Norwegian authorities and for individual
third-party projects. This cross-industry collaboration is a unique
solution and enables handling of large CO(2) volumes that would
otherwise have been emitted. This new value chain and
infrastructure for carbon capture and storage projects can only be
developed with cooperation between governments and companies.
If the project receives a positive final investment decision
from the Norwegian Government in 2020, Phase 1 is expected to be
operational in 2024.
Facts and figures
Northern Lights:
-- The Northern Lights project is part of the Norwegian full-scale carbon
capture and storage (CCS) project. The full-scale project will include
capture of CO2 from one or two industrial capture sources. The Northern
Lights project comprises transportation, receipt and permanent storage of
CO in a reservoir in the northern North Sea.
Phase 1
-- Phase 1 includes capacity to transport, inject and store up to 1.5
million tonnes of CO2 per year. Once the CO2 is captured onshore, it will
be transported by ships, injected and permanently stored some 2,500
metres below the seabed in the North Sea.
Operation
-- The facilities are scheduled to be operational in 2024.
-- The CO2 receiving terminal will be located at the premises of
Naturgassparken industrial area in the municipality of Øygarden in
Western Norway.
-- The plant will be operated from Equinor's facilities at the Sture
terminal in Øygarden and the subsea facilities from Oseberg A
platform in the North Sea.
Storage and location
-- Exploitation licence EL001 "Aurora" was awarded in January 2019.
-- Storage is located 2,500 metres below the seabed, south of the Troll
field.
-- In March 2020 the Eos confirmation well was drilled. The well will be
used for injection and storage of CO .
About Total
Total is a broad energy company that produces and markets fuels,
natural gas and low-carbon electricity. Our 100,000 employees are
committed to better energy that is safer, more affordable, cleaner
and accessible to as many people as possible. Active in more than
130 countries, our ambition is to become the responsible energy
major.
* * * * *
Cautionary Note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms "Total", "Total Group" and
Group are sometimes used for convenience. Likewise, the words "we",
"us" and "our" may also be used to refer to subsidiaries in general
or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200515005503/en/
CONTACT: Media Relations: +33 1 47 44 46 99 l presse@total.com l @TotalPress
Investor Relations: +44 (0)207 719 7962 l ir@total.com
SOURCE: Total
Copyright Business Wire 2020
(END) Dow Jones Newswires
May 15, 2020 13:40 ET (17:40 GMT)
TOTAL (NYSE:TOT)
Historical Stock Chart
From Sep 2024 to Oct 2024
TOTAL (NYSE:TOT)
Historical Stock Chart
From Oct 2023 to Oct 2024