Equinor secures first CCS exploration permit in Denmark
Equinor, in partnership with Ørsted and Nordsøfonden, has been granted its first carbon capture and storage (CCS) exploration permit in Denmark. The collaboration, named CO2 Storage Kalundborg, aims to develop a CO2 storage facility capable of storing up to 12 million tons of CO2 annually, located about 1400 meters below the surface in North West Zealand.
The permit allows for preliminary surveys to assess the feasibility of transforming the onshore license into a safe CO2 storage site. If successful, the initiative could commence CO2 storage by the end of this decade, pending approval from Danish authorities. “Developing large-scale CO2 solutions is critical for hard-to-abate industries to reduce emissions while maintaining industrial activity and value creation,” stated Grete Tveit, Senior Vice President for Low Carbon Solutions at Equinor.
Equinor anticipates a 4-8% real base project return during the early phase of its CO2 storage business, with potential for further value uplift as commercial markets develop. “We will use our experience from safely storing CO2 on the Norwegian Continental Shelf for nearly 30 years and other CCS developments when exploring the permit in Denmark,” Tveit added.
The awarded license is strategically located near Ørsted’s established Ørsted Kalundborg CO2 hub. Ørsted is constructing a CO2 capture facility at the Asnæs Power Plant, expected to become operational by 2026 and facilitate CO2 ship export to the Northern Lights storage facility in Norway. “Being part of this collaboration is a natural next step in building our Ørsted Kalundborg CO2 Hub,” said Ole Thomsen, Senior Vice President and head of Ørsted’s Bioenergy business.
The partnership’s focus on integrating CO2 capture, transport, and storage solutions underscores a significant advancement in carbon management technology. Such collaborative efforts are essential for achieving substantial reductions in greenhouse gas emissions, particularly in regions heavily reliant on industrial processes.