OSLO,11 November 2021 –Lime Petroleum AS (“Lime”) has entered into an agreement with Nautilus Carbon Services AS to participate in the first phase of a larger project involving several other joint-industry project partners, which aims to secure a storage site in the Norwegian Continental Shelf where CO2 can be injected and safely stored permanently. This project is in line with the global goal to reach net-zero emissions by 2050.
Phase I of the project will include research and development work to outline and describe the methodology and possible locations for a CO2 storage site. Upon completion, a decision will then be made to initiate Phase II, the goal of which is to secure the award of an exploitation licence on the Norwegian Continental Shelf with an application to the authorities.
Mr Lars Hübert, Chief Executive Officer of Lime, said, “With Lime’s acquisition of 33.84 per cent interest in the producing Brage Field, it is timely and opportune that Lime participates in such a project that will progress Lime’s ESG* objectives and help the company gain a foothold in the emerging CCS** value chain.”
The Net Zero 2050 road map describes how rapid increase in CO2 capture requires development of geological storage locations. A main assumption reaching the goals by 2050 is that 95 per cent of the captured volume needs tobe stored in such geological formations. Technology progress is likely to reduce the cost of capturing CO2 in the near future from power generation (also blue H2 from natural gas), industrial processes, energy from waste, and possibly DAC (direct air capture). All these industries generate CO2 volumes exceeding, by orders of magnitude, the Scope 1 emissions from the oil and gas industry.
According to International Association of Oil & Gas Producers, there are currently 51 existing and operational Carbon Capture, Utilisation, and Storage (CCUS) facilities in Europe with a target of 50 MTons/year in 2030. Ultra-high CO2 injection and storage rates are key to meet the Net Zero 2050 goals. According to the Net Zero goals (IEA, 2021), the global capture needs to be around 2 GTons/year in 2030, reaching nearly 6 GTons/year in 2040 and in 2050 the total captured CO2 is 7.6 GTons/year.
*ESG: environmental,social and governance
**CCS: carbon capture and storage