Norway receives six CO2 storage applications

  • Market: Emissions, Hydrogen
  • 03/07/23

Norway's petroleum and energy ministry has received applications from six firms in its latest invitation for CO2 injection and storage on the Norwegian continental shelf (NCS) in the North Sea.

Norway's state-controlled Equinor, oil and gas group Sval Energi, blue hydrogen and ammonia company Horisont Energi, UK-based private equity-backed producer Neptune Energy, decarbonisation firm Storegga, and German upstream firm Wintershall Dea all submitted applications for CO2 storage land allocations in a specific area of the NCS.

The deadline for applications was 22 February and all those submitted will now be processed by the ministry, which aims to allocate the land in the first half of this year.

The CO2 storage round was the second to take place in recent months, following the ministry's previous invitation for applications in November. Horisont Energi, Neptune Energy and Wintershall Dea also submitted applications in November, along with Norway-focused independent Aker BP, offshore services firm Altera Infrastructure and Austrian refiner OMV.

Norway is a frontrunner in carbon capture and storage development. Its industrial-scale Longship project is scheduled to start up in 2024.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
02/26/24

Liberty Steel targets Australian hydrogen, CCS deals

Liberty Steel targets Australian hydrogen, CCS deals

Sydney, 26 February (Argus) — UK-owned producer Liberty Steel has signed separate agreements with the South Australia (SA) state government and domestic independent Santos to respectively explore the use of hydrogen and discuss carbon capture and storage (CCS) opportunities for its Whyalla steel plant in SA. Liberty could become the first domestic third-party customer for the Santos-operated 1.7mn t/yr Moomba CCS project in SA's onshore Cooper basin, which is on track to start injection in mid-2024. Santos has secured finance for its $150mn share of the $220mn project, it said on 26 February, following an initial deal signed with Liberty over the weekend. Santos and Liberty will now enter discussions for a potential term natural gas supply deal that could include abated gas from Moomba. This could help reducing residual emissions from the Whyalla steelworks during a transition period, before the plant fully moves to green hydrogen once that is available at scale, Liberty's owner GFG Alliance said on 25 February. Liberty's separate agreement with the SA government, also signed on 25 February, is for potential supplies from the government's planned 250MW green hydrogen facility near Whyalla in the Spencer Gulf region. The SA government last October chose a consortium comprising Canadian-owned infrastructure group Atco and German firm Linde's subsidiary BOC as preferred contractors for the plant, which is expected to come on line by the end of 2025 . "Today's agreement gives us and our stakeholders confidence to ramp up our efforts and commitment to the production of our 4bn t of high-quality magnetite, the establishment of a state-of-the-art green iron and green steel plant which will ultimately be powered by renewable energy and green hydrogen," GFG Alliance chairman Sanjeev Gupta said. Liberty plans to build an electric arc furnace (EAF) at Whyalla , which will replace the existing coke ovens and blast furnace and lift steel production capacity to more than 1.5mn t/yr from 1mn t/yr. The company has received a A$63.2mn ($41.4mn) grant from the Australian federal government to support the purchase and installation of the EAF. It also has A$50mn committed by the SA government for use towards the EAF, pending approval. GFG Alliance also plans to produce 7.5mn t/yr of iron pellet from locally-sourced magnetite from 2030 in a direct reduced iron plant, which would initially use a mix of natural gas and green hydrogen as the reducing agent before fully transitioning to the latter. Santos is also targeting to offer CCS services from Moomba to reduce emissions from other hard-to-abate industries such as aluminium and cement, as well as from fuels like LNG, it said. Santos owns 66.7pc of Moomba with the balance controlled by Australian independent Beach Energy, which anticipates 30pc of its equity greenhouse gas emissions will be offset by the storage . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read More
News

UN Article 6.4 should become offset standard: Atmosfair


02/23/24
News
02/23/24

UN Article 6.4 should become offset standard: Atmosfair

Berlin, 23 February (Argus) — Article 6.4 of the Paris climate agreement should become the standard for carbon offset credits both regarding the double-counting of emissions reductions and the role granted to host countries, chief executive of non-profit carbon credit developer Atmosfair Dietrich Brockhagen told Argus . The voluntary carbon market (VCM) should incorporate much of the Article 6 provisions, otherwise lower quality projects will continue to dominate and diminish the market's integrity and credibility, Brockhagen said. Article 6.4 is designed to establish a high integrity centralised UN-supervised carbon market. The rules for the mechanism are currently being finalised by the UN's climate arm. But the key feature of Article 6.4 is less its much-touted corresponding adjustment — which precludes double counting of achieved emissions reductions by the host and buyer country — than the necessary co-operation between project developers and host country governments, Brockhagen said. Joint planning, development of project activities and negotiations with the host government when setting up a carbon offset project are "crucial", Brockhagen said, as this allows a host government to maintain "authority" over its nationally-determined contribution (NDC) — emissions reduction pledge — to the Paris deal. The government can decide whether it should implement certain projects itself or co-operate with an investor from abroad, incentivising developers only to propose projects in the best interests of the country. But an Article 6.4 credit is only worth as much as the transparency and quality of the underlying NDC — a corresponding adjustment based on a shoddy NDC can amount to "hot air", Brockhagen said. "Having a corresponding adjustment does not automatically guarantee a good project." "Ultimately, all good offset projects have to be additional at least to the government policies in its NDCs, so the government sets the ambition threshold," Brockhagen said. The transparency key to this would only be provided by Article 6 provisions. Negotiations with host country governments can be lengthy and complicated processes that some developers of carbon offsetting projects in the VCM are "understandably" unwilling to go through, Brockhagen said. He pointed to the two-year long process Atmosfair undertook with the Nigerian government when building a cook-stove factory project there in 2022. Atmosfair has since 2019 focused exclusively on developing projects aligned with Article 6 standards. "I do not know whether other offsetting companies will follow us here" until the mechanism's rules are either adapted by or enforced in the VCM, Brockhagen said. Atmosfair currently "parks" its Article 6.4-aligned credits with the VCM's Gold Standard ahead of the article registry's full operationalisation. "It is hard to come up with any price tag for the new certificates," Brockhagen said. "There is not yet a real market and the unsuccessful negotiations in Dubai have not helped," he said, referring to the failure of parties to come to an agreement on outstanding Article 6 elements at the UN Cop 28 climate conference last year. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

'Huge demand' ahead of carbon exchange: Australia’s CER


02/23/24
News
02/23/24

'Huge demand' ahead of carbon exchange: Australia’s CER

Sydney, 23 February (Argus) — Demand for Australian carbon credits and renewable energy certificates is expected to continue increasing rapidly over the coming years, including voluntary markets, officials at the country's Clean Energy Regulator (CER) said today as they unveiled details about the planned Australian Carbon Exchange. Cancellations of Australian Carbon Credit Units (ACCUs) are estimated to have reached around 1mn in 2023 in the voluntary market, a new high and up from approximately 855,000 in 2022, while those for large-scale generation certificates (LGCs) rose to an estimated 4.9mn last year from 3.4mn the previous year, CER's general manager Jane Wardlaw said during a webinar organised by the Australia-based industry group Carbon Market Institute. While most of the demand for both products comes from compliance obligations under Australia's Renewable Energy Target and Emission Reduction Fund, including the revamped Safeguard Mechanism , companies can also make cancellations against voluntary certification programmes such as the federal government-backed Climate Active or under organisational emissions or energy targets. The CER is expecting "huge demand" in the voluntary market stemming from Australia's planned stricter mandatory emissions reporting , especially for LGCs, executive general manager Mark Williamson said on 23 February. Demand for ACCUs in the compliance market has been already increasing on the back of new safeguard obligations starting from the July 2023-June 2024 financial year, Wardlaw said. The regulator has been working closely with the Australian Securities Exchange (ASX) and technology solutions provider Trovio Group on its planned Australian Carbon Exchange . Trovio as a first step is developing a new registry for the Australian National Registry of Emissions Units, which is expected to come on line in the second half of 2024, with the exchange itself set to be launched between the end of 2024 and early 2025. "We think it's time to move to an exchange-based market where participants can trade anonymously," CER chair David Parker said, noting the buying side of the market has become much more diversified in recent years. "That's not intended to lock out the over-the-counter [OTC] arrangements," Parker said, adding the regulator hopes OTC trades will be cleared on the exchange. Companies that operate existing trading platforms will be able to connect their systems to the new registry. But the CER will require them to "release some data transparency" such as volumes and prices, Wardlaw said. New options The registry and exchange will incorporate other existing certificates like LGCs and small-scale technology certificates, as well as new ones such as the proposed guarantees of origin for hydrogen and renewable electricity . It will also include the new Safeguard Mechanism credit units (SMCs), which will be issued by the government to facilities that reduce their emissions below their baselines. The CER plans to publish information about which facilities are issued SMCs. While the exchange works with the CER on the new spot exchange, ASX's senior manager of issuer services Karen Webb said it is developing its own separate carbon futures contracts, which it is planning to launch in July 2024. The physically settled contracts will consist of ACCUs, LGCs and New Zealand units, for delivery up to five years ahead. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Braya begins renewable diesel production


02/22/24
News
02/22/24

Braya begins renewable diesel production

Washington, 22 February (Argus) — Canada's Braya Renewable Fuels today launched commercial operations at its renewable fuels plant in Come By Chance, New Foundland and Labrador. Braya expects to produce 18,000 b/d of renewable diesel, using internally-produced traditional hydrogen. It envisions expanding its diesel capacity to 35,000 b/d and adding sustainable aviation fuel (SAF) production in the future. It also said it is in the early stages of exploring renewable hydrogen production at the refinery to lower its carbon footprint, but does not have a timeline. Last year it began seeking a supplier of 35,000 t/yr of renewable hydrogen to support its diesel and SAF production, and in March 2023 selected German renewables developer ABO Wind as its preferred supplier. Braya's ownership group Cresta Fund Management acquired the 130,000 b/d petroleum refinery in 2020 and began work to convert the facility to produce renewable fuels in late 2021. Initially it aimed to produce 14,000 b/d of renewable diesel and targeted SAF production in mid-2022, but a fire in September 2022 postponed startup. By Emmeline Willey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ship speeds on Red Sea rerouting to 'erode' GHG cuts


02/22/24
News
02/22/24

Ship speeds on Red Sea rerouting to 'erode' GHG cuts

Edinburgh, 22 February (Argus) — Ships increasing speed as they are forced to sail longer routes to avoid Houthi attacks in the Red Sea could "erode" environmental gains in shipping, the United Nations Conference on Trade and Development (UNCTAD) said today. The shipping sector has for over a decade reduced sailing speeds to cut fuel costs and reduce greenhouse gas (GHG) emissions, UNCTAD said. Speed optimisation is one of the solutions shipowners can consider to improve their rating under the International Maritime Organisation's (IMO) carbon intensity indicator (CII) measures which came into force in January 2023. Container ships' speeds for voyages around the Cape of Good Hope at the southern tip of Africa have increased since the Red Sea disruption started late last year. Container trade flows measured in tonnes account for over half of traffic through the Suez Canal, according to the Suez Canal Authority. Higher speeds are likely being used as a way of adhering to delivery schedules but also to manage fleet capacity, as longer routes mean vessels are employed for a longer period of time. UNCTAD said that these trends could erode environmental gains previously achieved by ships reducing speeds, or slow steaming. The organisation calculated that a ship increasing speed to 16 knots from 14 knots would increase bunker fuel consumption per mile by 31pc. "In this context, longer distances travelled due to rerouting away from the Suez [Canal] and through the Cape of Good Hope imply that greenhouse gas emissions for a round trip from Singapore to northern Europe would rise by over 70pc," it said. Ship tonnage entering the Gulf of Aden declined by over 70pc between the first half of December 2023 and the first half of February 2024, while ships passing the Cape of Good Hope increased by 60pc, UNCTAD noted. The security issues in the Red Sea have also affected insurance costs for shipowners, UNCTAD said. "By early February 2024, some reports indicate [risk] premiums rising to around 0.7pc to 1pc of a vessel's value, from under 0.1pc previously," UNCTAD said, citing a report by ratings agency Moody's. Ships avoiding the Suez Canal, particularly container vessels, also pose a risk to "global supply chains, potentially leading to delayed deliveries, heightened costs and inflation", it said. "The war in Ukraine had already shown the impact of longer distances and freight rates on food prices." UNCTAD estimates that about half of the increase in food prices observed in 2022 resulted from increased transport costs caused by longer distances and higher freight rates. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.