Applications for permits to store CO2 in the North Sea

- I am pleased to see that we're experiencing great commercial interest in CO₂ storage on the continental shelf. Access to possible storage areas is a prerequisite for Norwegian stakeholders to be able to offer large-scale, commercial CO₂ storage for emission sources in Europe. It is important for the government to make arrangements so that profitable CO₂ storage can both become a new industry here at home and at the same time help Europe achieve its climate goals, says Minister of Energy Terje Aasland.

The ministry facilitates a fast and efficient allocation of storage permits, allowing players seeking permits to apply as soon as they have developed a sufficiently good application basis. Applications received are assessed consecutively. If the applications meet the criteria, the area considered relevant to allocate is announced with a suitable application deadline.

Based on this process, the ministry announced three areas in the North Sea on June 6th, 2024. By the end of the application period on August 29, the Ministry had received applications from six companies.

The ministry will now process the applications received.

Applicants:

Aker BP ASA

Equinor Low Carbon Solution AS

Harbour Energy Norge AS

Horisont Energi AS

Storegga Norge AS

TotalEnergies EP 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.