Norway: TotalEnergies and Partners Launch the 2nd phase of Northern Lights CCS Project
TotalEnergies (TTE) and partners Equinor and Shell have announced the Final Investment Decision for Phase 2 of the Northern Lights carbon capture and storage (CCS) project. The expansion will increase CO2 storage capacity from 1.5 million to over 5 million tons per year by 2028, representing an investment of NOK 7.5 billion (~$700 million).
Phase 1 is completed and will begin operations this summer, starting with CO2 transportation from Heidelberg Materials' cement factory in Brevik, Norway. The CO2 will be stored 2,600 meters below the seabed off western Norway's coast.
Phase 2 includes new infrastructure development and follows a 15-year commercial agreement with Stockholm Exergi for storing 900,000 tons of biogenic CO2 annually from 2028. Northern Lights has secured agreements with five companies and is in advanced discussions with other European industrial customers for the remaining storage capacity.
TotalEnergies (TTE) e i partner Equinor e Shell hanno annunciato la Decisione Finale di Investimento per la Fase 2 del progetto di cattura e stoccaggio del carbonio (CCS) Northern Lights. L'espansione aumenterà la capacità di stoccaggio di CO2 da 1,5 milioni a oltre 5 milioni di tonnellate all'anno entro il 2028, rappresentando un investimento di 7,5 miliardi di NOK (~700 milioni di dollari).
La Fase 1 è completata e inizierà le operazioni quest'estate, partendo dal trasporto di CO2 dalla fabbrica di cemento Heidelberg Materials a Brevik, in Norvegia. La CO2 sarà stoccata a 2.600 metri sotto il fondale marino al largo della costa occidentale della Norvegia.
La Fase 2 include lo sviluppo di nuove infrastrutture e segue un accordo commerciale di 15 anni con Stockholm Exergi per stoccare 900.000 tonnellate di CO2 biogenica annualmente a partire dal 2028. Northern Lights ha assicurato accordi con cinque aziende ed è in discussioni avanzate con altri clienti industriali europei per la capacità di stoccaggio rimanente.
TotalEnergies (TTE) y los socios Equinor y Shell han anunciado la Decisión Final de Inversión para la Fase 2 del proyecto de captura y almacenamiento de carbono (CCS) Northern Lights. La expansión aumentará la capacidad de almacenamiento de CO2 de 1,5 millones a más de 5 millones de toneladas al año para 2028, lo que representa una inversión de 7.5 mil millones de NOK (~700 millones de dólares).
La Fase 1 está completada y comenzará operaciones este verano, iniciando con el transporte de CO2 desde la fábrica de cemento Heidelberg Materials en Brevik, Noruega. El CO2 se almacenará a 2,600 metros por debajo del lecho marino frente a la costa occidental de Noruega.
La Fase 2 incluye el desarrollo de nueva infraestructura y sigue un acuerdo comercial de 15 años con Stockholm Exergi para almacenar 900,000 toneladas de CO2 biogénico anualmente a partir de 2028. Northern Lights ha asegurado acuerdos con cinco empresas y está en conversaciones avanzadas con otros clientes industriales europeos para la capacidad de almacenamiento restante.
TotalEnergies (TTE)와 파트너인 Equinor 및 Shell은 북부 빛 탄소 포집 및 저장(CCS) 프로젝트 2단계에 대한 최종 투자 결정을 발표했습니다. 이 확장은 2028년까지 CO2 저장 용량을 연간 150만 톤에서 500만 톤 이상으로 증가시키며, 75억 NOK(약 7억 달러)의 투자를 나타냅니다.
1단계는 완료되었으며, 이번 여름부터 노르웨이 브레빅에 있는 하이델베르크 소재의 시멘트 공장에서 CO2 운송을 시작합니다. CO2는 노르웨이 서부 해안에서 해저 2,600미터 아래에 저장될 것입니다.
2단계는 새로운 인프라 개발을 포함하며, 2028년부터 매년 90만 톤의 생물 유래 CO2를 저장하기 위한 스톡홀름 엑세르기와의 15년 상업 계약을 따릅니다. Northern Lights는 5개 회사와 계약을 체결했으며, 나머지 저장 용량을 위해 다른 유럽 산업 고객과의 고급 논의 중에 있습니다.
TotalEnergies (TTE) et ses partenaires Equinor et Shell ont annoncé la Décision Finale d'Investissement pour la Phase 2 du projet de capture et stockage du carbone (CCS) Northern Lights. L'expansion augmentera la capacité de stockage de CO2 de 1,5 million à plus de 5 millions de tonnes par an d'ici 2028, représentant un investissement de 7,5 milliards de NOK (~700 millions de dollars).
La Phase 1 est terminée et commencera ses opérations cet été, en démarrant avec le transport de CO2 depuis l'usine de ciment Heidelberg Materials à Brevik, en Norvège. Le CO2 sera stocké à 2 600 mètres sous le fond marin au large de la côte ouest de la Norvège.
La Phase 2 inclut le développement de nouvelles infrastructures et fait suite à un accord commercial de 15 ans avec Stockholm Exergi pour le stockage de 900 000 tonnes de CO2 biogénique par an à partir de 2028. Northern Lights a sécurisé des accords avec cinq entreprises et est en discussions avancées avec d'autres clients industriels européens pour la capacité de stockage restante.
TotalEnergies (TTE) und die Partner Equinor und Shell haben die endgültige Investitionsentscheidung für Phase 2 des Northern Lights Projekts zur Kohlenstoffabscheidung und -speicherung (CCS) bekannt gegeben. Die Erweiterung wird die CO2-Speicherkapazität bis 2028 von 1,5 Millionen auf über 5 Millionen Tonnen pro Jahr erhöhen und eine Investition von 7,5 Milliarden NOK (~700 Millionen USD) darstellen.
Phase 1 ist abgeschlossen und wird in diesem Sommer mit dem CO2-Transport aus dem Zementwerk von Heidelberg Materials in Brevik, Norwegen, beginnen. Das CO2 wird 2.600 Meter unter dem Meeresboden vor der Westküste Norwegens gespeichert.
Phase 2 umfasst die Entwicklung neuer Infrastrukturen und folgt einem 15-jährigen kommerziellen Vertrag mit Stockholm Exergi zur Speicherung von jährlich 900.000 Tonnen biogenem CO2 ab 2028. Northern Lights hat Vereinbarungen mit fünf Unternehmen gesichert und befindet sich in fortgeschrittenen Gesprächen mit anderen europäischen Industriekunden für die verbleibende Speicherkapazität.
- Significant capacity expansion from 1.5M to 5M tons of CO2 per year
- Secured 15-year commercial agreement with Stockholm Exergi
- Five major European companies already committed to storage agreements
- Advanced discussions ongoing with additional industrial customers
- Project leverages existing infrastructure for cost efficiency
- Large capital investment required ($700 million)
- Long timeline to reach expanded capacity (2028)
- Project success dependent on securing additional commercial agreements
Insights
The $700 million Northern Lights expansion represents a significant milestone in Europe's industrial decarbonization strategy. This project's capacity increase from 1.5 million to over 5 million tons of CO2 annually demonstrates unexpected demand strength in the carbon storage market. TotalEnergies and partners have effectively created Europe's first major cross-border carbon management network, securing five large industrial customers already with more in advanced negotiations.
The 15-year commercial agreement with Stockholm Exergi for 900,000 tons of biogenic CO2 annually provides critical revenue visibility and operational certainty. This project leverages TotalEnergies' subsurface expertise and existing infrastructure to establish first-mover advantage in the nascent CCS market.
The timing is particularly strategic - with Phase 1 becoming operational this summer and Phase 2 targeted for 2028 when EU emissions regulations tighten substantially. For hard-to-abate sectors like cement (Heidelberg Materials) and district heating (Stockholm Exergi), Northern Lights offers one of few viable decarbonization pathways.
This investment strengthens TotalEnergies' strategic positioning amid the energy transition by diversifying beyond traditional hydrocarbon revenue streams while utilizing core technical capabilities in subsurface management. The rapid progression from initial implementation to expansion indicates both technical success and stronger-than-anticipated market demand for carbon storage solutions in Europe.
The Northern Lights expansion represents a strategically sound NOK 7.5 billion (~$700 million) capital allocation that balances long-term positioning with commercial pragmatism. TotalEnergies and partners have mitigated investment risk by securing multiple long-term offtake agreements before committing to expansion, with Stockholm Exergi's contract alone representing approximately 18% of the expanded capacity.
By leveraging existing infrastructure for this expansion, the partners have optimized capital efficiency. The project includes high-visibility revenue streams through contracted agreements with five major European industrial emitters spanning multiple countries, creating a diversified customer base.
While relatively modest compared to TotalEnergies' overall annual capital expenditure, this investment creates a foothold in the emerging carbon management market with substantial growth potential. The 15-year agreement structure provides revenue predictability through at least 2043, spanning multiple carbon regulatory cycles.
For investors, this represents a positive diversification of TotalEnergies' business model, allowing the company to monetize its subsurface expertise in a growth market aligned with climate objectives. The rapid commitment to Phase 2 following Phase 1 completion suggests stronger-than-expected commercial traction. With Northern Lights positioned as one of Europe's first large-scale commercial CCS operations, TotalEnergies gains valuable operational experience that could be leveraged for similar projects globally as carbon pricing mechanisms mature.
- Northern Lights will increase its CO2 storage capacity to more than 5 Mt per year
- Northern Lights signed a commercial agreement with Stockholm Exergi for transport and storage of 900 kt CO2/y, from 2028
- First CO2 storage from Phase 1 of the project is expected this summer
The first phase of Northern Lights is completed and ready to receive CO2 from industrial emitters. Operations are expected to start this summer, with the first CO2 transportation by ship from Heidelberg Materials’ cement factory in Brevik,
The second phase announced today represents an investment of
This FID of this second phase follows the signing of a 15-year commercial agreement between Northern Lights and the Swedish district energy provider, Stockholm Exergi, for the cross-border transport and storage of 900,000 tons of biogenic CO2 emissions annually, starting in 2028. Stockholm Exergi is the 5th company to commit with Northern Lights for transport and storage of its CO2 emissions, after Heidelberg Materials and Celsio in
“I am delighted of the launch of Northern Lights phase 2, which represents a significant step forward for the CCS industry. Northern Lights can thus provide a concrete solution for the hard-to-abate industrial emitters in
“The decision to expand our CO2 transport and storage services represents the next step in building a commercially viable CCS market in
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About Northern Lights
Northern Lights offers CO2 transport and storage as a service. Our mission is to enable the reduction and removal of industrial emissions in
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About TotalEnergies and Carbon Storage
TotalEnergies’ focus is first to avoid emissions and then to reduce them by developing and deploying a systematic approach, asset-by-asset, to implement the best available technologies. For residual emissions, the Company is developing industrial projects for carbon storage. Backed by core competencies in large-scale project management, gas processing and geosciences, TotalEnergies is on track to enable significant decarbonization of hard-to-abate industrial businesses through projects such as Northern Lights in
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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FAQ
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