Poland's ORLEN takes on CO2 storage project in Norway's Arctic
05/09/2023 11:54
OSLO, Sept 5 (Reuters) - PGNiG Upstream Norway, part of
Poland's ORLEN Group PKN.WA , will join and operate the Polaris
carbon storage project in the Norwegian Barents Sea, owned by
Horisont Energi HRGI.OL , the companies said on Tuesday.
The two groups have signed a letter of intent which will see
the ORLEN subsidiary become operator and acquire a stake of up
to 50% in the Polaris licence, they said in a statement
The process of bringing the new partner on board is expected
to be completed by early December, they added.
The Polaris project would mark ORLEN's first intended CO2
storage licence anywhere, which it hopes can help decarbonise
industry exposed to high emission costs, CEO Daniel Obajtek said
in the statement.
"Cement, steel and fertilizers producers, if they want to
continue operating in Poland, or more broadly in the European
Union, must find a way to manage carbon dioxide emissions," he
added.
The agreement is in line with ORLEN's 2030 goal of storing
or utilising up to 3 million tonnes of CO2 annually, the company
said, adding first carbon injections at Polaris could start in
late 2028 or early 2029.
The Polaris project was granted a storage licence by
Norwegian authorities in June 2022 and is still in an early
development phase.
According to Horisont Energi, it has the potential to store
100 million tonnes of CO2, including emissions from the Barents
Blue ammonia plant the company plans to build in northern
Norway.
Horisont Energi is also cooperating with German energy firm
E.On, which last year acquired a 25% stake in the Norwegian
company and plans to store 1 million tonnes of CO2 at Polaris.
(Reporting by Nora Buli, editing by Terje Solsvik)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))