ORLEN Group advances in CO2 management with Polaris licence acquisition in Barents Sea
PGNiG Upstream Norway, part of the ORLEN Group, has announced a major advancement in its emerging business line focused on industrial CO2 emissions management. The company has acquired a 50% interest in the CO2 exploration licence Polaris in the Barents Sea, partnering with Horisont Energi AS. This transaction is pivotal in advancing the Group’s capabilities in carbon storage, marking a key development on the Norwegian Continental Shelf, known for its sophisticated carbon storage projects.
ORLEN CEO Daniel Obajtek emphasized the importance of this venture in the Group’s energy transition strategy. He stated, “CO2 capture and storage will play a pivotal role in delivering the Group’s climate policy, also enabling us to introduce a new carbon management service.” With rising CO2 allowance prices, this project is crucial for maintaining the competitiveness of industries in Poland and other EU countries.
Under the agreement, PGNiG Upstream Norway (PUN) will become the operator of the licence, capitalizing on its over 15 years of experience on the Norwegian Continental Shelf. The transaction, following a letter of intent signed in September, is awaiting approval from Norwegian authorities.
Polaris Licence: A Major Step for ORLEN Group in Industrial CO2 Emissions Control
The Polaris licence’s geological structures are estimated to store about 100 million tonnes of carbon dioxide over 25 years. Injection of CO2 could start by late 2028 or early 2029, with part of the CO2 sourced from Horisont Energi’s ‘Barents Blue’ ammonia plant project. The remaining capacity will be available to third parties.
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi, highlighted the project’s potential for significant emission reductions and its role in the rapidly evolving CCS industry in Norway and Europe.
ORLEN aims to reduce emissions by 25% by 2030 and plans to store or utilise up to 3 million tonnes of CO2 annually. This initiative includes providing carbon management services to industries with limited emission reduction options, like cement, steel, and chemicals, and constructing a marine terminal for CO2 transshipment under the ECO2CEE project.
The Norwegian Continental Shelf remains a strategic market for ORLEN Group, with plans to increase its Norwegian gas production significantly by 2030. The recent acquisition of KUFPEC Norway shares will boost the company’s natural gas production, further solidifying its position in the energy sector.