Aker BP, OMV (Norge) win Poseidon CO2 storage licence on Norwegian Continental Shelf

Aker BP and OMV (Norge) have forged a collaboration agreement for carbon capture and storage (CCS) and have secured the Poseidon CO2 storage licence on the Norwegian Continental Shelf (NCS) from the Norwegian Ministry of Petroleum and Energy.

The CO2 storage licence awarded to Aker BP and OMV is in the Norwegian North Sea.

Aker BP and OMV (Norge) have stakes of 60% and 40%, respectively in the Poseidon CO2 storage licence, which will be operated by the former.

The CO2 storage lease area comes with a work program, which includes a 3D seismic acquisition along with the decision to drill or drop by 2025.

The license could offer storage in the excess of five million tons of CO2 annually. The goal will be to release CO2 from a variety of industrial emitters across North-West Europe, including from a number of Borealis’ industrial sites throughout Europe.

Aker BP, OMV (Norge) win Poseidon CO2 storage licence on Norwegian Continental Shelf. Photo courtesy of catazul from Pixabay.

As Poseidon licence partners, Aker BP and OMV (Norge) have signed a collaboration deal with Hoegh LNG to provide the marine CO2 infrastructure needed for the collection, consolidation, and moving of CO2 from emitters across the European continent to the NCS.

Hoegh LNG is said to have built cost-efficient marine CCS solutions based on its experiences in being one of the largest and most technologically modern users of LNG infrastructure. This comprises floating storage as well as regasification terminals such as the three fast-track floating LNG import terminals, which have been completed in Germany in 2022.

Aker BP said that it is evaluating the scope for CO2 storage on the NCS as a possible future business opportunity and possible decarbonization tool that could benefit it for a longer time.

The awarding of the Poseidon CO2 storage license marks the first step in the process of evaluating the mature and existing CO2 storage options to support the implementation of CCS in North-West Europe.

Aker BP claims to have deep expertise in reservoir management, drilling, wells, as well as logistics in Norwegian waters.

OMV Group, the parent company of OMV (Norge), aims to achieve net zero by 2050. The company is said to have a wealth of experience within its exploration and production and low carbon business to the collaboration.

OMV Group has a long-term strategic goal to store five million tons of CO2 each year by the end of this decade. OMV (Norge) has gained subsurface expertise through operated exploration activities as well as via collaborations with key producing on the NCS.

Karl Johnny Hersvik — Aker BP CEO said: “We expect CCS to play a key role in the transition to a low-carbon energy future, and the NCS holds significant potential for carbon storage.

“As a leading operator on the NCS, Aker BP is well positioned to take an active role in this area. This licence award provides us with an opportunity to explore both the technical and commercial potential of carbon storage. We look forward to collaborating with our partners to develop this into a sustainable and profitable business.”