TotalEnergies acquires 40% stake in Norway CO2 storage project
- August 22, 2023
- Posted by: Quatro Strategies
- Categories: ESG & Renewable Energy, Europe
TotalEnergies, the French energy major, has entered into an agreement to acquire a 40% participating interest held by CapeOmega Carbon Storage AS, a subsidiary of CapeOmega AS, in the CO2 storage exploration license ExL004, also known as the “Luna” project. ExL004 covers an area of 453 square kilometers and is located 120 km offshore Bergen in 200 meters of water depth. The license is adjacent to the site of the Northern Lights CO2 storage project, in which TotalEnergies already holds a 33% participating interest. The first phase of the Northern Lights project is set to begin in 2024.
The Luna project is operated by Wintershall DEA Norge AS, which holds a 60% participating interest. The acquisition is contingent upon satisfying customary conditions, including obtaining final approvals from relevant government authorities.
This acquisition is viewed as a significant step for TotalEnergies to expand its carbon capture and storage (CCS) capabilities. The Luna project’s exploration area, if successful, could potentially provide storage capacity for several hundred million tons of CO2 emissions from hard-to-abate industries in Europe. TotalEnergies is focused on a systematic approach to carbon emissions reduction, first by avoiding and then by reducing emissions. The company is developing industrial projects for carbon storage to address residual emissions.
“This transaction is an important milestone to grow our CO2 storage offering: subject to a successful exploration, this area could enable the storage of several hundred million tons of CO2 from hard-to-abate industries in Europe,” said Arnaud Le Foll, Senior Vice-President New Business – Carbon Neutrality at TotalEnergies.
“With the Northern Lights start-up in 2024 and other projects under development in the Netherlands, Denmark and the UK, TotalEnergies is building a world-class carbon storage portfolio across the North Sea. Norway will play a leading role in this portfolio thanks to its large geological storages and supportive government policies.”
With projects like Northern Lights in Norway, Aramis in the Netherlands, and Bifrost in Denmark, TotalEnergies aims to contribute to the substantial decarbonization of European businesses. The company’s comprehensive portfolio of projects across the North Sea reflects its commitment to carbon neutrality and aligns with supportive government policies in the region.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Bolivia is using lithium to rewire ties with the U.S.
Bolivia’s new government is trying to turn a geological endowment into an economic stabilization strategy. After years in which state controls and heavy public spending strained the macro framework, the administration is now pitching lithium as both a magnet for foreign capital and a bargaining chip for closer ties with Washington.
Foreign Minister Fernando Aramayo says La Paz is seeking near-term financial support from the Trump administration, explicitly floating a currency-swap style facility modeled on Argentina, while simultaneously reopening the country’s largely undeveloped lithium sector to outside investors and re-examining legacy deals struck with Chinese and Russian counterparties.
Trump administration lifts pressure limits on Gulf oil wells to spur output
The U.S. Interior Department announced new guidelines on Thursday that expand allowable pressure limits for oil production in a section of the Gulf of Mexico, a move the Biden-era rules had restricted but which the Trump administration now sees as key to advancing its “Energy Dominance” strategy.
The changes apply to the Wilcox rock formation, a prolific reservoir located beneath waters recently rebranded by President Donald Trump as the “Gulf of America.” The revised rules allow for so-called downhole commingling — producing oil from multiple underground reservoirs through a single wellbore — at significantly higher pressure differentials.
Saudi Arabia challenges Russia in OPEC+ as market share supersedes price discipline
Saudi Arabia is signaling a fundamental strategic shift in global oil politics, pressing OPEC+ to extend accelerated production increases through August and possibly September in a bid to reclaim market share—even at the cost of lower prices.
Riyadh is urging the group to stick with and possibly expand upon its current plan to hike output by at least 411,000 barrels per day (bpd) over the coming months. These proposed additions would build upon existing agreements to increase supply in May, June, and July by the same amount.