Large-scale Dutch CO2 storage project passes to next phase
Neptune Energy and its partners EBN, Tenaz Energy and ExxonMobil Netherlands CCS have progressed their large-scale CO2 storage project offshore the Netherlands to the next phase.
L10CCS, to be connected to the Aramis CO2 transport and storage initiative in the Dutch part of the North Sea, has entered the next phase in the project – front-end engineering design (FEED).
Neptune Energy reported today, December 13, that it had together with its partners EBN, Tenaz Energy and ExxonMobil Netherlands CCS progressed the project from the concept select phase, which includes various technical and economic assessments, into this next Define/FEED phase.
L10CCS seeks to store 5 Mton CO2 annually, said to be equivalent to a third of the total CO2 emissions from Dutch domestic vehicles in one year.
All partners have signed up to a FEED Cooperation Agreement and Neptune has awarded the Facilities FEED contract to Petrofac, with the contract having kicked off last month.
“CCS is expected to account for nearly 15% of the cumulative reduction in CO2 emissions in the EU, according to the IEA Sustainable Development Scenario,” said Lex de Groot, Managing Director of Neptune Energy in the Netherlands, the operator of L10CCS.
“Without CO2 storage it would not be possible to meet the climate goals. To create a well-functioning CCS market, both emitters and storage providers need CO2 transport. The region around L10 has a potential storage capacity up to 120-150 MT, so will play a crucial role in helping achieve climate goals and open up possibilities for many emitters that need safe CO2 storage in the North Sea at low costs.”
The storage license application for L10CCS was submitted in the second quarter of 2023 and the project is awaiting the award of the license by the Dutch Ministry of Economic Affairs & Climate Policy.
According to Neptune Energy, talks with emitters, looking to store their carbon in depleted gas fields under the North Sea, are ongoing and necessary contractual arrangements will be progressed during this project phase.
Completion of the technical FEED scopes is anticipated during the second half of 2024, with a view to progressing towards a project final investment decision (FID) shortly thereafter in 2025.
Neptune Energy noted that the timeline of L10CCS is fully aligned with the Aramis project timeline and is planned to be connected and operational as of the first day of the opening of this CO2 transport system, now planned in 2028.