Neptune, Horisont, E.ON partner to develop European carbon capture and storage value chain
(WO) — Horisont Energi, a Norwegian clean energy company, and Neptune Energy, an independent global E&P company, signed a Memorandum of Understanding (MoU) with the international energy major E.ON to develop a European carbon capture and storage (CCS) value chain.
The three energy companies will take a strong position in the carbon capture and storage market, accelerating the transition to carbon neutrality.
The MoU covers several areas such as the development, financing, and funding of a complete value chain for CO2 handling. If Horisont Energi´s and Neptune Energy´s application for CO2 exploration for the Errai project is awarded, the intention is that this will be the first joint project.
“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. 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”, said Bjørgulf Haukelidsæter Eidesen, CEO at Horisont Energi.
Errai is planned as the first commercial CO2 project in Norway and will represent an important step in industrializing carbon capture and storage (CCS) as a competitive service. Bringing in E.ON will strongly contribute to linking CO2 projects on the Norwegian Continental Shelf (NCS) with development of the CO2 removal market in Europe.
Pending legislative changes, the cooperation could lead the way for commercial carbon removal market based on sequestration of biogenic CO2.
Several industries cannot be fully electrified and will therefore depend on carbon capture and storage to meet net zero emissions requirements and the fulfilment of the 1.5-degree target by 2050. 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 Errai project was initiated by Horisont Energi in 2021. In December 2022, Horisont Energi and Neptune Energy submitted a joint application for the acreage identified in the Errai project. In the application, Neptune Energy has been proposed as operator.
The Errai 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 landowner, Haugaland Næringspark, possesses one of Norway’s largest industrial areas, with critical infrastructure including access to fiber, electricity, water, sewage, and a deep-sea quay already in place.
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 customer by 2030, starting from 2027 with gradual increase.
The three companies contemplate to cooperate as partners in different projects, but in case of license award to Horisont Energi and Neptune Energy, Errai could be the first possibility for E.ON to become a partner.
The announcement of license award or not for Errai to the applicants is expected in the first half of 2023.