Applications for permits to store CO2 in the North Sea

— I am very pleased with the large interest in CO₂ storage on the Norwegian continental shelf. The fact that we regularly receive applications to announce areas and to store CO₂ in these areas show that our policy about awarding acreage is working as intended, says Minister of Petroleum and Energy Terje Aasland.

The Ministry has received inquiries from commercial actors wanting awards of acreage for CO2 storage. The area is located in the North Sea and was announced on January 11^th, 2023, in accordance with the storage regulations.

By the application deadline of February 22^nd, the Ministry had received applications from five companies. The Ministry will process the applications received and aims to award areas in accordance with the storage regulations during the first half of 2023.

List of companies that have applied:

Equinor ASA

Neptune Energy Norge AS

Storegga Norge AS

Sval Energi AS

Wintershall Dea Norge ASA

Background

Activities aimed at surveying and exploring for subsea reservoirs for the storage of CO₂, as well as exploitation, transport, and storage of CO₂ in such reservoirs on the Norwegian continental shelf are subject to the regulations on transportation and storage of CO₂ into subsea reservoirs on the continental shelf (regulation 5^th December 2014 no. 1517).

Anyone who is conducting such storage operations needs a permit in accordance with the regulations. In addition, on February 20^th 2020, the Petroleum Safety Authority established regulations on safety and the working environment for the transport and storage of CO₂ on the continental shelf (the CO₂ safety regulations)

CO_2-storing is pivotal if we are to reach our climate ambitions and is also the foundation for a future new industry. The Norwegian government are facilitating the socio-economically profitable storage of CO₂ on the Norwegian continental shelf. Companies that have the necessary expertise and that have matured industrially feasible and profitable projects will be able to apply for awards in accordance with the business concept. The government will conduct a predictable, efficient, and flexible process to award industrial players access to relevant storage options. Areas that are relevant for awards will be announced, among other things, to ensure competition

In line with the regulations on transportation and storage of CO₂ into subsea reservoirs on the continental shelf, the ministry normally expects to award an exploration licence prior to awarding an exploitation licence in a relevant area. Exploration licences can be awarded to one or more competent companies. If a licence is awarded to several companies, the ministry will, generally, appoint one of the companies as operator.

The award of exploration licences will normally be done with a work program including one binding phase and subsequent conditional phases with decision points for the continuation or relinquishment. Relinquishing allows other stakeholders with storage needs to apply for awards of the area. The work program will normally end with a demand for the submission of a plan for development and operation (PUD) for the storage location or relinquish of the area.