Norwegian carbon capture projects gather pace
Oil and gas companies and carbon-intensive industry this week agreed to further develop three separate Norwegian carbon capture and storage (CCS) projects — a step up in commercial focus on the technology.
Norwegian fertiliser producer Yara and Norway's Northern Lights CCS project signed what the latter said is the world's first commercial agreement for cross-border CO2 transport and storage. Yara will from early 2025 capture, compress and liquefy 800,000 t/yr of CO2 from its Sluiskil ammonia production facility in the Netherlands. The carbon will then be transported to the Northern Lights storage site off the coast of western Norway.
"Yara, our first commercial customer, will fill the available capacity of Northern Lights Phase 1. This agreement will establish a market for CO2 transport and storage," Northern Lights managing director Borre Jacobsen said.
Northern Lights is the transport and storage segment of the Longship project. The Norwegian government has provided 80pc of the funding. Shell, TotalEnergies and Norway's state-controlled Equinor are joint partners in the Northern Lights project.
Equinor and German oil company Wintershall Dea have separately agreed to develop a CCS chain — called NOR-GE — connecting German industrial carbon emitters with CO2 storage sites offshore Norway. The firms plan to jointly apply for offshore CO2 storage on the Norwegian continental shelf, with the aim to store 15mn-20mn t/yr of CO2. The companies plan to commission a 900km pipeline to connect a CO2 collection hub in northern Germany with the Norwegian storage sites by 2032. The project's capacity is expected to be 20mn-40mn t/yr of CO2 — around 20pc of German industrial emissions. The firms will also consider an early deployment solution to move CO2 by ship.
The third project — Errai — will involve UK-based, private equity-back upstream oil and gas firm Neptune joining forces with Norwegian blue hydrogen and ammonia firm Horisont Energi to store 4mn-8mn t/yr of CO2, with the potential to increase this. The project includes an onshore terminal for intermediate CO2 storage, as well as permanent offshore storage. Neptune plans to store more carbon than it emits by 2030 — from its operations and sold products. It has plans for a CCS storage and appraisal licence in the UK and has agreed to work with several partners on a Dutch CCS project.
Norway, which has suitable offshore storage sites for CO2, is leading Europe in the development of a CCS industry. The technology is likely to be key in reaching net zero emissions globally, particularly in decarbonising heavy industry. But others see CCS as problematic, allowing emitters to abate rather than avoid CO2 emissions.
And the London Protocol — which prohibits the export of waste to other states for dumping or incineration at sea — could pose a challenge to cross-border CO2 transport. There is an amendment for CO2 export for storage under certain conditions, but it has not been ratified by all signatories to the agreement. Any cross-border CO2 transport requires a bilateral agreement between the importing and exporting countries, as well as a declaration submitted to the International Maritime Organisation.
Related news posts
Brazil's drought: Northern rivers still dropping
Brazil's drought: Northern rivers still dropping
Sao Paulo, 26 September (Argus) — The worst drought in Brazil's history continues to reduce river levels in the Northern Arc region, hampering navigation on rivers that are used as waterways and are important routes to transport grains and fertilizers. Madeira waterway The waterway links Rondonia state's capital Porto Velho to the Itacoatiara port, in Amazonas state. Itacoatiara port is expected to receive around 371,435 metric tonnes (t) of fertilizers in September, according to line up data from shipping agency Unimar. Status: The situation is most critical in the Madeira waterway, the second largest in the northern region, in Porto Velho. The state's ports and waterways authority (Soph) halted operations there on 23 September because the Madeira River's depth at the port reached 25cm (9.8in), the lowest since monitoring began in 1967. The Madeira River depth in Porto Velho increased to 34cm on 26 September, according to monitoring data from the Brazilian Geological Survey (SGB). Amazonas waterway It is the main waterway in Brazil's north, handling around 65pc of the region's cargo, according to the national transportation and infrastructure department (Dnit). It links Amazonas' capital Manaus to Para's capital Belem. Status: The Negro River has also been falling. The depth was at almost 13.88m at the SGB monitoring point in Manaus on 26 September — an extreme drought level and very close to the historic low of 13.64m recorded in 2023. Tapajos waterway It is an important waterway to move production from Mato Grosso state's northern area, with the Santarem port, in Para state, as a destination. The Santarem port handled nearly 4mn t of cargo in 2023, with fertilizers accounting for 578,630t, according to the Para port authority. Status: The Tapajos-Teles Pires waterway is also facing a dire situation. The national water and sanitation agency ANA declared a water shortage on the Tapajos River on 23 September. Drier weather than usual has dropped the levels of Tapajos, especially in the stretch between Itaituba and Santarem cities, in Para state, where flows are below the minimum levels observed in history. The depth of the Tapajos River at the Itaituba monitoring point, where the transfer point for the Miritituba waterway is located, was at 92cm on 26 September, below the record low of 132cm, according to SBG data. At the Santarem monitoring point, where the port of Santarem is located, the Tapajos River was at 74cm, a level considered dry. The historical minimum at the location is -55cm below the port's reference point. A level below zero does not mean the river is dry, but a negative reading indicates very low conditions. Tocantins-Araguaia waterway The Tocantins-Araguaia waterway encompasses the Araguaia and Tocantins rivers. It runs from the Barra do Garcas city, in Mato Grosso, onto the Araguaia River, or from Peixes city, in Tocantins state, onto the Tocantins River, to the port of Vila do Conde, in Para. Soybeans, corn, fertilizers, fuels, mineral oils and derivative products are transported via the northern waterways. Vila do Conde port handled 19.3mn t of cargo in 2023, according to Para port authority. Status: The SGB has two monitoring points on the Araguaia River. In the Nova Crixas city, in Goias state, the river was at 299cm, below the historical level of 310cm. In Sao Felix do Araguaia city, in Mato Grosso state, the river was at 257cm, a situation of extreme drought and close to the historical minimum level of 251cm. In September, the federal government announced investments of R500mn ($91.4mn) to carry out dredging work on stretches of rivers in Amazonas. Para's state government requested another R146mn to address problems caused by the drought. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Biden touts climate legacy
Biden touts climate legacy
New York, 25 September (Argus) — US president Joe Biden made the case for his climate legacy on Tuesday, casting the Inflation Reduction Act as part of a "new economic playbook" and warning of environmental and economic repercussions if former president Donald Trump returns to the White House. The 2022 law, which included a raft of tax credits to subsidize clean energy technologies, was the "most significant climate law passed in the history of the world," Biden said in a speech at the Bloomberg Global Business Forum, an event on the sidelines of the UN general assembly and Climate Week NYC. The market for clean energy is "booming" because of the law, Biden said, pointing to investments made after its passage in battery technology, nuclear energy, hydrogen, and what the administration terms "climate-smart agriculture." Most of those benefits are flowing to Republican-led states, he noted. While analysts see some provisions in the law as less vulnerable than others, including tax credits for hydrogen and carbon capture popular among oil and gas companies, Republicans have said they want to repeal much of the law. Trump-era tax cuts are set to expire in 2025, teeing up a major legislative fight over tax policy next year regardless of which party controls the US Congress and the White House. Although Biden argued that his climate policies have already had substantial impacts, he also said that Trump could halt much of that progress. Manufacturing facilities and businesses that have started up because of the law's incentives would "shut down" if it was repealed, he said. The US shifting course on energy policy could also have spillover effects on other countries' climate ambitions, Biden said, pointing to his administration's support for language agreed to at last year's UN Cop 28 climate summit around transitioning away from fossil fuels. "If we didn't lead, who the hell leads? Who fills the vacuum without America leading?" he said. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil’s carbon market will not start before 2030
Brazil’s carbon market will not start before 2030
New York, 24 September (Argus) — Brazil's carbon trading market will not be fully implemented in this decade, according to think tank Centro Brasil no Clima. The creation of the carbon market is a long process that starts with passing a law to create a carbon market. But environmental groups and others have criticized Brazil's carbon market bill that the lower house approved at the end of last year as too complex. The senate has yet to set a timeline to debate the lower house's proposal but is expected to make significant changes to the bill, meaning that it will need to return to the lower legislature for a final round of voting. Still, there is a growing expectation in the public and private sectors that the bill will pass ahead of the UN's Cop 29 climate conference later this year. The think tank estimates that the implementation phase of the carbon market would take around 5-6 years under the current draft bill. The preparation and legal framework for the creation of the market may take from 1-2 years. Pilot testing and initial rollout of the carbon market would take around a year. The submission of monitoring plans and emissions reporting would also be completed within 1-2 years after the pilot testing. But there is no clarity on a deadline for the phase that involves testing of the market with a full allocation of carbon credits, said William Wills, technical director at the think tank. Only 25pc of the emissions produced in Brazil will be cover in the carbon market, he said. This includes emissions from energy, waste and industries, but the agriculture sector, which accounted for 27pc of greenhouse gas (GHG) emissions produced in the country in 2022, will be excluded. Brazil's largest source of GHG emissions comes from land use change and forestry, accounting for 48pc of emissions in the same period. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US-led offset idea earns more corporate support
US-led offset idea earns more corporate support
New York, 24 September (Argus) — More companies registered support today for a US-backed carbon offsetting initiative that is hoping to steer funds toward the decarbonization of developing countries' power sectors. The Energy Transition Accelerator (ETA) — a project of the US State Department and two philanthropies, the Bezos Earth Fund and the Rockefeller Foundation — said that 19 companies support the general idea of the initiative, that "high-integrity carbon credits" can support "an accelerated and just clean energy transition." As part of an announcement tied to Climate Week NYC, 14 companies, including some that had previously not registered interest, signed onto a letter saying they were committed to working with the ETA as the initiative advances. The letter notes, however, that the companies are not pledging any "obligation of funding" for the initiative, which has an unclear timeline for getting projects up-and-running. The ETA previously set plans for formally launch this past April but instead said then that it would spend this year "building" on a framework for projects released last year . The ETA is hoping to create a "jurisdictional-scale" carbon crediting standard, steering funds toward efforts such as accelerating the retirement of coal-fired power plants, building new renewable generation, and improving the electric grid in developing countries. The idea is that buyers would be able to finance offset projects with more tangible climate benefits, hopefully avoiding the reputational risks associated with much of the voluntary carbon market. Prices for some major nature-based carbon offsets have fallen over the past year, as concerns about their integrity have deterred prospective buyers . The initiative's goals for this year are working to build "a community of buyers and sellers," said Nat Keohane, president of the Center for Climate and Energy Solutions think tank at the Xpansiv Climate Week Summit on Monday. Chile, the Dominican Republic, and Nigeria have expressed interest in serving as ETA pilot countries, while the Philippines this year signed on as an observer country rather than as a direct participant. Ahead of the UN's Cop 29 climate summit this year in Azerbaijan, the ETA wants to demonstrate the progress interested countries have been able to make and to collaborate with the World Bank on economic analysis and modeling to understand what future projects and investment plans might look like, Keohane said. Winrock International, which runs the American Carbon Registry, was tasked by the ETA last year with developing a standard and methodology for crediting emissions reductions. Keohane expects that to be out "next year," he said at the event. Winrock did not immediately respond to requests for comment for more clarity on its timeline. "There are also some other crediting standards coming out, and ETA will be evaluating those against the criteria that we put out in our framework last year," Keohane said. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more