Tripartite partnership pursuing European carbon capture and storage value chain
Horisont Energi and Neptune Energy have signed a Memorandum of Understanding (MoU) with E.ON for the development of a European carbon capture and storage (CCS) value chain.
With the agreement, Horisont Energi aims to strengthen the existing cooperation with E.ON, and by bringing in Errai partner Neptune Energy to expand the cooperation towards joint development of the European CCS value chain.
The MoU covers the development, financing, and funding of a complete value chain for CO2 handling.
The partners plan to cooperate on different projects, but Errai could be the first possibility for E.ON to become a partner in case a license is awarded.
“Our cooperation with E.ON and Neptune Energy is already strong. Through this MoU we are expanding the cooperation to include three experienced energy companies,” said Bjørgulf Haukelidsæter Eidesen, CEO at Horisont Energi.
“Together we will strengthen our position to establish a European CCS value-chain business. In case of license award of Errai, a possible direct participation by E.ON would further strengthen the commercial basis for this project.”
According to Horisont Energi, bringing in E.ON will strongly contribute to linking CO2 projects on the Norwegian Continental Shelf (NCS) with the development of the CO2 removal market in Europe. Pending legislative changes, the cooperation could furthermore lead the way for a commercial carbon removal market based on the sequestration of biogenic CO2.
A full CCS value chain will bring the solution to the customers offering a one-stop-shop for off-take of CO2 and permanent storage in safe sub-sea reservoirs, the company stated.
Neptune Energy’s Managing Director in UK and Norway, Odin Estensen said: “A partnership with energy major E.ON will strengthen our ambition in establishing Norway’s first commercial carbon storage project. This could be a key contributor to Neptune’s 2030 goal of storing more carbon than is emitted from our operations and from use of the oil and gas products we sell.”
In November 2022, Horisont Energi signed a letter of intent with E.ON concerning sequestration services of more than one million tonnes of CO2 planned to originate from E. ON’s European customers by 2030, starting from 2027 with gradual increase.
Shortly after, Horisont Energi and Neptune Energy submitted a joint application for the acreage identified in the Errai project, with Neptune Energy proposed as operator.
The project is planned with an injection capacity of 4-8 million tonnes of CO2 annually in the first development phase, with potential for more in later phases. The project includes an onshore terminal for intermediate CO2 storage and processing, prior to transport for permanent storage in an offshore reservoir.
As a part of the work to further develop the project, Horisont Energi has obtained a long-term lease option for a site suitable for a CO2 terminal at Gismarvik in Rogaland.
The announcement of license awards is expected in the first half of the year.