PGNiG Upstream Norway, a company from the Orlen Group, has signed an agreement with Horisont Energi, under which it acquires 50% of the shares in the Polaris concession in the Barents Sea, which will be used for storing carbon dioxide, Orlen said. The transaction is expected to contribute to the development of the company’s new business line related to the reception and management of industrial CO2 emissions. Polaris is one of the most advanced carbon storage projects on the Norwegian Continental Shelf.
“We are starting another project that will strengthen Orlen as a regional leader in the energy transition. Capture and storage of CO2 will be important for the implementation of the Company’s climate policy. It will also allow us to offer a new type of services related to carbon management. In the face of high prices of CO2 emission allowances, storage of CO2 will be crucial for maintaining the competitiveness of some industries in Poland and other EU countries. We are already seeing a great interest in the possibility of using this type of services. All the more important is the transaction today, thanks to which the ORLEN Group will include shares in the Polaris concession in the Barents Sea, where carbon dioxide can be injected. This project will strengthen our competences and know-how in the field of offshore CO2 storage, which we will also be able to use in Poland,” said President Daniel Obajtek.
Under the agreement between PGNiG Upstream Norway (PUN) and Horisont Energi, PUN will acquire 50% of the shares in the Polaris concession and will gain the status of its operator. The transaction is the result of a letter of intent signed by the companies in September this year.
The capacity of the Polaris concession geological structures, which is the share of PGNiG Upstream Norway, is currently estimated in total at approx. 100 million tons of carbon dioxide, which should enable warehouse operations for 12-25 years. The preliminary timetable assumes that in the event of final confirmation of the assumed storage possibilities of carbon dioxide injections, it could begin at the turn of 2028 and 2029. Part of the stored CO2 will come from the ammonia plant, which Horisont Energi plans to launch as a separate project called “Barents Blue”. The remaining part of the deposit capacity will be made available to external entities, according to the announcement.
“The Polaris project has the potential to contribute to reducing emissions on an industrial scale and demonstrates the rapid growth of the CCS industry in Norway and Europe. Polaris will also play an integral role in the clean ammonia project ‘Barents Blue’,” added Horisont Energi Bjørgulf Haukelidsæter Eidesen.
The up-to-education and storage or use of CO2 is one of the solutions that, by the end of 2030, to reduce emissions related to refinery, petrochemical and mining activities by 25%. According to Orlen’s strategy, by 2030, the company will be able to store or develop 3 million tonnes of carbon dioxide per year.
The Orlen Group manages refineries in Poland, the Czech Republic and Lithuania, retail operations in Central Europe, mining in Poland, Norway, Canada and Pakistan, as well as energy production, including renewable energy and natural gas distribution. As part of the construction of the multi-energy concern, the company has finalized the acquisitions of Energi, Grupa Lotos and PGNiG. Its consolidated sales revenues reached PLN 277.56 billion in 2022. The company has been listed on the WSE since 1999; it is part of the WIG20 index.
Source: Horisont Energi and ISBnews
