Shell, Equinor, TotalEnergies to invest $714 million in carbon storage expansion

By Nora Buli

OSLO (Reuters) - Shell, Equinor and TotalEnergies said on Thursday they will invest 7.5 billion Norwegian crowns ($713.66 million) into expanding their flagship carbon storage project in western Norway after securing a new customer deal.

The decision comes after the partners signed a 15-year commercial agreement with Stockholm Exergi to transport and store 900,000 tonnes of carbon dioxide per year at the Northern Lights facility, they said.

The expansion aims to more than triple the site's annual CO2 injection capacity to at least 5 million tonnes per year, equivalent to roughly 10% of annual emissions in Norway, Shell said in a statement.

Carbon capture and storage (CCS) has long been highlighted as a way to reduce CO2 emissions but there are few commercial projects in existence, with Norway in 2020 launching the Longship project, which includes the Northern Lights site.

Phase one of Northern Lights was completed in September and can inject 1.5 million metric tons of CO2 per year, with first deliveries expected later this year.

The second phase will add an additional 3.5 million tons a year and is expected to be completed in the second half of 2028, Northern Lights said.

The new infrastructure to be built will include additional onshore storage tanks, pumps, a new jetty and injection wells, as well as additional CO2 transport vessels.

Thursday's investment decision also includes funding from the European Commission via a grant worth 131 million euros ($141.34 million), the companies said.

($1 = 10.5092 Norwegian crowns)

($1 = 0.9269 euros)

(Reporting by Nora Buli; Editing by Susan Fenton)