Offshore staff
SANDNES, Norway — Horisont Energi and Neptune Energy have signed a memorandum of understanding (MoU) with E.ON with the aim to develop a European carbon capture and storage (CCS) value chain.
This will strengthen Horisont Energi’s existing cooperation with E.ON, while Neptune is the company’s partner in the proposed Errai CO2 storage project in Norway.
The MoU covers development, financing and funding for handling of CO2. If the application for Errai is successful, this would likely be the three partners’ first joint project.
Bringing in E.ON, Horisont Energi added, would help link CO2 projects on the Norwegian Continental Shelf with development of Europe’s CO2 removal market, and it could eventually open a commercial carbon removal market based on sequestration of biogenic CO2.
Various industries across Europe will depend on CCS to comply with their net-zero emissions requirements. They include production of steel, cement, chemicals, pulp and paper. A full CCS value chain would offer them a one-stop service for offtake of CO2 followed by permanent storage in subsea reservoirs.
Neptune Energy’s managing director in UK & Norway, Odin Estensen, said, “A partnership with energy major E.ON will strengthen our ambition to establish Norway's first commercial carbon storage project. This could be a key contributor to Neptune's 2030 goal of storing more carbon than is emitted from our operations and from use of the oil and gas products we sell.”
Under the joint application submitted last December for acreage identified in the Errai project, Neptune Energy is the proposed operator.
Errai has a planned annual injection capacity of 4 MM metric tons to 8 MM metric tons during its first development phase, with potential for more in later phases. Facilities would include an onshore terminal for intermediate CO2 storage and processing, prior to transport for permanent storage offshore.
Horisont Energi has obtained a long-term lease option for a site for the terminal at Gismarvik in Rogaland, southwest Norway, with an existing deepsea quay.
In November 2022, the company signed a letter of intent with E.ON concerning sequestration services for more than 1 MM metric tons of CO2 from E. ON’s European customers by 2030.
02.20.2023
