TotalEnergies Expands Carbon Storage Portfolio with North Sea Project Acquisition
Posted 22/08/2023 11:38
TotalEnergies, a prominent energy company based in France, is embarking on an endeavor to enhance its carbon storage endeavors in the North Sea. Through a newly established agreement with CapeOmega Carbon Storage, a wholly-owned subsidiary of CapeOmega, TotalEnergies is set to acquire CapeOmega's 40% participating interest in a CO2 storage exploration license situated offshore Norway.
This strategic deal paves the way for TotalEnergies to secure its stake in the CO2 storage exploration license known as ExL004, which is linked to the Luna project. Positioned 120 kilometers off the coast of Bergen in water depths of 200 meters, the license falls within a vital region for carbon storage development. The Luna project is operated by Wintershall Dea, holding a 60% interest, while TotalEnergies will now assume CapeOmega's stake.
The ExL004 license encompasses an area of 453 square kilometers and stands adjacent to the license that hosts the Northern Lights CO2 storage project. TotalEnergies already holds a 33% stake in the Northern Lights project, which is in the development phase and poised for its initial operations in 2024.
Arnaud Le Foll, Senior Vice-President of New Business – Carbon Neutrality at TotalEnergies, highlighted the significance of this transaction. He noted that the expansion of their CO2 storage offerings through this acquisition could potentially enable the storage of several hundred million tons of CO2 from challenging-to-decarbonize industries in Europe.
TotalEnergies is strategically building a formidable carbon storage portfolio across the North Sea, with the Northern Lights project serving as a cornerstone. Le Foll emphasized that Norway's substantial geological storage potential and supportive governmental policies make it a pivotal player in this portfolio.
The drive for carbon capture and storage (CCS) in the Norwegian Continental Shelf is evident, with increasing areas designated and exploitation licenses awarded for CO2 storage. The collaborative efforts between the EU and Norway, as well as Belgium and Norway, are fostering a climate of cooperation to accelerate the clean energy transition and cross-border CO2 transport.
TotalEnergies' commitment to decarbonization is underscored by projects like Northern Lights in Norway, Aramis in the Netherlands, and Bifrost in Denmark. Simultaneously, the company is maintaining a diversified approach, as highlighted by its involvement with gas-focused endeavors, such as its agreement with Inpex to acquire interests in gas fields offshore Australia.