TotalEnergies, in partnership with Equinor and Shell, has announced the Final Investment Decision (FID) for the second phase of the Northern Lights carbon capture and storage (CCS) project. The expansion will significantly boost the project’s annual CO₂ transport and storage capacity from 1.5 million tonnes to over 5 million tonnes by 2028.
The first phase of the Northern Lights project is now complete and is set to commence operations this summer. The inaugural shipment of captured CO₂ from Heidelberg Materials’ cement plant in Brevik, Norway will be transported by ship and injected into geological formations located 2,600 metres beneath the seabed, off the coast of Øygarden in western Norway.
The newly approved second phase represents an investment of NOK 7.5 billion (approximately $700 million) and will build upon the project’s existing infrastructure, both onshore and offshore. The expansion will include the addition of new storage tanks, pumps, a jetty, injection wells, and specialised transport vessels. These developments are expected to be operational by the latter half of 2028.
This next phase follows the recent signing of a 15-year commercial agreement between Northern Lights and Swedish district energy provider Stockholm Exergi. Under the deal, 900,000 tonnes of biogenic CO₂ will be transported and permanently stored each year starting in 2028. Stockholm Exergi becomes the fifth company to commit to Northern Lights, joining Heidelberg Materials, Celsio (Norway), Yara (Netherlands), and Ørsted (Denmark).
Nicolas Terraz, President of Exploration & Production at TotalEnergies, welcomed the announcement: “I am delighted by the launch of Northern Lights Phase 2, which marks a significant advancement for the CCS industry. Northern Lights offers a concrete, scalable solution for hard-to-abate industrial emissions in Europe, enabling companies to reduce their carbon footprint and safeguard long-term sustainability.”
Tim Heijn, Managing Director of Northern Lights Joint Venture, added: “This decision represents the next step in building a commercially viable CCS market in Europe. It underlines our commitment to offering practical solutions for emissions reduction. The investment is a major milestone not only for Northern Lights, but also for our partners, customers, and policymakers who have worked collectively to establish a functioning CCS value chain.”
Northern Lights is also in advanced discussions with several major European industrial emitters to secure contracts for the project’s remaining storage capacity, further cementing its role as a key enabler of the EU’s climate ambitions.
