Neptune Energy and Horisont Energy have signed a memorandum of understanding that will see the two work together to progress the Errai carbon capture and storage (CCS) project in Norway.
First mooted by Horisont Energi last year, Errai could see between 4-8 million tonnes of CO2 stored annually with the potential to scale up further in later phases.
The project includes an onshore terminal for intermediate CO2 storage, with the intention to permanently store the CO2 in an offshore reservoir.
The terminal would be capable of receiving CO2 from European and domestic customers, including from a planned CO2 terminal at the Port of Rotterdam.
Several onshore locations in Southern Norway are being evaluated for the terminal.
Neptune brings subsurface and CCS experience to the project, having conducted CO2 reinjection at the K12-B gas field in the Dutch North Sea for the last 14 years. It is also a partner in the Norwegian Snøhvit field, which has been reinjecting CO2 since 2008.
Horisont CEO Bjørgulf Haukelidsæter Eidesen said: “We are delighted that Neptune Energy chose to work with us on this large-scale industrial CCS project. There is a growing demand for CO2 storage in the market. We believe that this project and our other CCS activities are essential for the net zero transition.”
Neptune’s managing director for Norway and the UK, Odin Estensen added: “Sharing the vision of carbon neutrality, Neptune is excited to partner up with Horisont Energi. We look forward to leveraging both our oil and gas operations capabilities as well as our significant experience of operating carbon capture and storage activities.
“Errai complements Neptune’s strategy to store more carbon than is emitted from our operations and from the use of our sold products by 2030.”
Horisont is behind another Norwegian CCS project – the 100 million tonne Polaris venture – off the coast of Finnmark in northern Norway, backed by Equinor and Vår Energi.
The project secured a carbon storage exploration licence earlier this year.
The scheme will be linked to a corresponding site producing blue ammonia and blue hydrogen in Hammerfest, fed by gas from the Melkøya LNG plant. Horisont intends to take a final investment decision on the Barents Blue scheme by the end of this year, with a view to first ammonia production by 2025.
A green hydrogen production facility in Finnmark is also in the works.