March 28, 2025 [Storage Terminals Magazine]- TotalEnergies, in partnership with Equinor and Shell, has announced the Final Investment Decision for the second phase of the Northern Lights development, which will expand the project’s transport and storage capacity from 1.5 million to over 5 million tonnes of CO₂ per year by 2028.

Expanding Carbon Capture and Storage Capacity

The first phase of Northern Lights has been completed and is ready to receive CO₂ from industrial emitters. Operations are expected to begin this summer, with the first CO₂ shipment transported by ship from Heidelberg Materials’ cement factory in Brevik, Norway, followed by injection and permanent storage in a reservoir located 2,600 meters below the seabed off the coast of Øygarden, western Norway.

The second phase, announced today, represents a NOK 7.5 billion (~$700 million) investment and will leverage existing onshore and offshore infrastructures. The expansion will include new onshore storage tanks, pumps, a jetty, injection wells, and transport vessels, all of which are expected to be completed in time for a start-up in the second half of 2028.

Strategic Agreement and Market Expansion

The FID for the second phase follows the signing of a 15-year commercial agreement between Northern Lights and Stockholm Exergi, a Swedish district energy provider, for the cross-border transport and storage of 900,000 tonnes of biogenic CO₂ emissions annually, starting in 2028.

Stockholm Exergi is the fifth company to commit to Northern Lights’ transport and storage services, following Heidelberg Materials and Celsio in Norway, Yara in the Netherlands, and Ørsted in Denmark. Additionally, Northern Lights is in advanced discussions with several large European industrial customers to market the remaining storage capacity.

Industry Leaders Highlight the Importance of Expansion

Nicolas Terraz, president of exploration & production at TotalEnergies, emphasised the significance of the project’s expansion, stating:

“I am delighted with the launch of Northern Lights Phase 2, which represents a significant step forward for the CCS industry. Northern Lights provides a concrete solution for hard-to-abate industrial emitters in Europe, enabling them to reduce CO₂ emissions and secure the sustainability of their businesses.”

Tim Heijn, managing director of Northern Lights JV, highlighted the project’s role in advancing commercial carbon capture and storage, stating:

“The decision to expand our CO₂ transport and storage services marks the next step in building a commercially viable CCS market in Europe. It reaffirms Northern Lights’ commitment to providing an effective solution for companies to reduce emissions. This investment decision is a milestone for our company, our customers, industry partners, governments, and regulators. Together, we have worked hard to establish the CCS chain and make a real impact in enabling Europe to achieve its climate targets.”

Advancing Carbon Capture for a Sustainable Future

With the expansion of Northern Lights, TotalEnergies, Equinor, and Shell are furthering their commitment to carbon capture and storage as a key solution for reducing industrial CO₂ emissions in Europe. The second phase of the project is set to play a crucial role in achieving the region’s climate goals while supporting industrial decarbonisation efforts.