Subsea 7 Spearheads Northern Lights Phase 2: Revolutionizing Carbon Capture in the North Sea

Introduction

In a major development in the field of carbon capture and storage (CCS), Subsea 7 has been appointed as the technical service provider for the Northern Lights Phase 2 project. This pioneering venture, led by Equinor, Shell, and TotalEnergies, marks a significant stride in the fight against climate change by increasing CO₂ storage capacity significantly. The project's ambition is not only to expand its current carbon storage capabilities but also to foster a new energy value chain for Norway and Europe.

Background: The Northern Lights Project

The Northern Lights initiative began operational activities in September 2024, aiming to transport and store CO₂ emissions from industrial sources. It was developed jointly by Equinor, Shell, and TotalEnergies, each holding a 33.3% stake. The project received strategic support from the Norwegian government and was designated a Project of Common Interest by the European Union (EU). This status underscores its importance in advancing sustainable energy solutions and reducing greenhouse gas emissions across Europe.

Key Components of Phase 2

The second phase of the Northern Lights project is poised to elevate the stakes in carbon sequestration significantly. Here are the key components and developments in Phase 2:

• Expanded Storage Capacity: The primary goal of Phase 2 is to increase the storage capacity from 0.5 million tonnes per year in Phase 1 to at least 5 million tonnes per year by 2028. This expansion is crucial for meeting the demands of a growing customer base in Europe.

• Subsea 7's Role: Subsea 7 has been contracted to handle engineering, procurement, construction, and installation of a 5-kilometer CO₂ pipeline, ensuring smooth transportation of CO₂ from onshore facilities to the subsea storage site.

• Additional Infrastructure: The project includes the installation of integrated satellite structures, umbilicals, tie-ins, and pre-commissioning activities. These tasks are critical for the successful integration and operation of the expanded storage facility.

• Financial Commitment: The consortium, including Equinor, Shell, and TotalEnergies, has committed NOK7.5 billion (approximately $714 million) to support the Phase 2 development. A significant portion of this investment will go towards constructing additional onshore storage tanks, a new jetty, and injection wells, enhancing the project's capabilities.

• Support from Funding Initiatives: The Phase 2 expansion benefits from a €131 million grant from the Connecting Europe Facility for Energy (CEF Energy) funding scheme. This support highlights the project's significance in aligning with EU objectives to reduce carbon emissions.

Project Timeline and Progress

• Immediate Commencement: Project management and engineering activities for Phase 2 have commenced at Subsea 7's Stavanger office. This immediate start ensures that the project stays on track with its ambitious timeline.

• Fabrication and Operations Schedule: The fabrication of the pipeline will take place at Subsea 7’s spoolbase in Vigra, Norway. Offshore operations are slated to begin in 2026 and continue into 2027, with the aim of completing expansions by the second half of 2028.

Partnerships and Customer Base

The Northern Lights project has attracted a diverse set of clients, including:

• Commercial Agreements: The consortium has signed agreements with various industrial customers, including Yara from the Netherlands and Stockholm Exergi, marking a significant step in utilizing the project's storage capacities.

• Growing Demand: Discussions are ongoing with other large European industrial companies to utilize the remaining storage capacity, underscoring the project's potential to become a key player in the European CCS market.

The Future of Carbon Capture and Storage

As the world continues to grapple with the challenges of climate change, projects like Northern Lights demonstrate the feasibility and potential of CCS technology in reducing carbon emissions. The appointment of Subsea 7 as a technical service provider further enhances the project's capabilities, leveraging expertise in offshore engineering and installation.

Impact on Energy Transition

The success of the Northern Lights Phase 2 project will contribute significantly to the energy transition in Europe. By scaling up carbon storage, it facilitates the reduction of greenhouse gas emissions from industrial sectors, aligning with global efforts to achieve net-zero emissions by 2050. This aligns with wider EU policies aimed at enhancing sustainable energy infrastructure and reducing the environmental footprint of industrial activities.

Conclusion

Subsea 7's involvement in the Northern Lights Phase 2 project represents a pivotal moment in the advancement of carbon capture and storage technologies. As the world moves towards a more sustainable future, collaborations like these will be crucial in meeting climate change mitigation goals. With its focus on expanding CO₂ storage capacity and fostering a new energy value chain, the Northern Lights initiative is set to play a leading role in Europe's transition towards a more carbon-neutral economy.

Key Points Summary

• Project Scale: The Northern Lights Phase 2 aims to increase CO₂ storage capacity to at least 5 million tonnes per year.
• Partnership and Funding: Equinor, Shell, and TotalEnergies are investing NOK7.5 billion, supported by a €131 million grant from the CEF Energy program.
• Role of Subsea 7: Providing technical services for engineering, procurement, construction, and installation, including a 5-kilometer pipeline.
• Project Timeline: Operations to commence in 2026 and 2027, with completion expected by the second half of 2028.
• Impact: Enhancing global efforts to reduce carbon emissions and contribute to a sustainable energy future.