Poland's Orlen withdraws from Polaris CO2 storage project in Norway (updated)
14/10/2024 16:00
(Adds more information on Polaris project, co-CEO comments in
paragraphs 7-8)
Oct 14 (Reuters) - Polish refiner Orlen's PKN.WA Orlen
Upstream Norway unit has decided to withdraw from the Polaris
carbon storage project in the Norwegian Barents Sea due to an
insufficient return on investment, the company said on Monday.
Orlen had initially expected the project to have the
capacity to inject 2 to 6 million metric tons a year of CO2.
However, geological and geophysical analyses of its structure
revealed the potential to be at the lower end of this range, it
said.
The company said that despite the setback it remained
committed to developing its carbon capture and storage
operations, aiming to reach a capacity to inject or utilise 3
million tons of CO2 annually by the end of 2030.
Orlen is currently exploring other CCS projects and
programmes that align with its risk and profitability
expectations, it added.
In response to Orlen Upstream Norway's withdrawal, Norwegian
energy firm Horisont Energi HRGI.OL , the Polaris project's
owner, said it was exploring alternative strategies to advance
the project.
These include ongoing discussions with the ministry of
energy and potential new licence partners.
"Polaris has already documented its reservoir capacity and
technical CO2 storage feasibility, establishing it as a
technically mature project", co-CEOs Bjørgulf Haukelidsæter
Eidesen and Leiv Kallestad said in a statement.
"Horisont Energi will now consider the options of how to
bring the Polaris project forward as a competitive alternative
for the Barents Blue Project" they added.
(Reporting by Rafal Wojciech Nowak; Editing by Jan Harvey and
Mark Potter)
((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))