The project partners have submitted development and operation plans to the Norwegian ministry of petroleum and energy. Their investment decision will depend on Norwegian authorities taking the final investment decision (FID) and receiving approval from the European Free Trade Association (EFTA) Surveillance Authority, Norway's Equinor said.
The trio intends to set up a joint-venture company and initially invest close to NOK 6.9 billion (USD 682.3m/EUR 629.4m), with some 57% of the amount going to Norwegian contractors.
Northern Lights is part of the Norwegian full-scale CCS project which will include capturing carbon dioxide (CO2) from up to two industrial plants.
The Northern Lights stage will enable the transportation, reception, injection and permanent storage of CO2 offshore in a reservoir located some 2,500 metres (1.55 miles) below the seabed. In Phase 1, the project will be able to handle and store up to 1.5 million tonnes of CO2 per year.
The partners have already drilled a confirmation well that will be used for injection and storage if the project gets the green light.
If the Norwegian government takes the FID in 2020, Phase 1 and facilities that will handle the CO2 could be operational in 2024.
"This unique project opens for decarbonisation of industries with limited opportunities for CO2-reductions. It can be the first CO2 storage for Norwegian and European industries, and can support goals to reduce net greenhouse gas emissions to zero by 2050," said Anders Opedal, executive vice president for Technology, Projects & Drilling at Equinor.
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