Norway approves operator for first Arctic carbon capture project



The Norwegian Ministry of Energy has approved PGNiG Upstream Norway – part of Poland’s ORLEN Group – as the operator that will partner with Norwegian energy firm Horisont Energi in the first Arctic carbon capture and storage project.

Horisont Energi said in a statement on 3 January that the Norwegian governmental approval “represents a key milestone in the development of the Polaris project”, while the Norwegian player is in advanced discussions with German energy firm E.ON on CO2 storage capacity for the carbon storage license.

The collaboration will involve capturing carbon dioxide from the Barents Blue project to store in the Arctic Polaris field.

The pair struck a sales and purchase agreement in December last year bringing PGNiG Upstream Norway as a license partner on board in the Arctic CO2 project.

In the CO2 exploration license EXL003, PGNiG Upstream Norway and Horisont Energi each hold a 50% share.

“With PGNiG Upstream Norway now in place as operator and partner, we have a very strong fundament to unlock the potential of Polaris as a vehicle to reduce emissions on an industrial scale,” said Horisont Energi chief executive Bjorgulf Haukelidsæter Eidesen.

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Orlen chief executive Daniel Obajtek said: “The Polaris carbon storage project is a significant emission management initiative in Europe with expected ripple effects far beyond the Norwegian continental shelf.”

The Polaris field could store and estimated 100 million tonnes of CO2, which should keep it in operation for between 12 and 25 years, according to an earlier Orlen statement.

Based on the potential project timetable, a development concept is to be selected in 2024, with first carbon injection beginning in late 2028 or early 2029.