Yes. It’s called carbon capture and storage, CCS, and you’ve probably heard us talk about it before. Some might say there’s been too much talk and too little action. If that’s the case, we hope the following paragraphs provide more grounds for optimism.
But first: What is carbon capture and storage? Well, it’s exactly what it sounds like – capturing CO₂ emissions for permanent and secure storage in the subsurface on land or under the seabed. We can capture CO₂ emissions from burning fossil energy, or from industrial processes. And we have 30 years of experience with CO₂ capture and storage on the Norwegian continental shelf (NCS). We know that it works, and we know that it’s safe. At the same time, we’re constantly on the lookout for solutions that can make CO₂ storage on an even larger scale both better and less expensive.
Ok, but burning fossil fuel for energy is one of the biggest sources of CO₂ emissions! Isn’t this just an attempt to extend our dependence on fossil fuels? No, that’s not it. Carbon capture and storage are crucial for achieving climate targets. What’s more, this is about – hang on to your hats – European industry. Cement, steel and other process industries require the high temperatures of vast amounts of fossil energy, which means that electricity is not even an alternative. CO₂ is also emitted from industrial processes such as manufacturing fertiliser and incinerating refuse.
This poses a major challenge for these industries. However, there is a solution. Given the steadily rising price of CO₂ emissions, it may become more attractive to invest in carbon capture and storage. It’s really a simple equation. It must be cheaper to store CO₂ safely and permanently underground, rather than allowing it to seep out into the atmosphere.
Along with CO₂ capture, hydrogen can also be made from natural gas. Hydrogen can be used to produce clean power or high-temperature heat. It can also be used in the transport sector, and thus reduce emissions. Another opportunity associated with CCS is to capture CO₂ from the exhaust produced by gas power plants. This would make energy for heating and electricity in millions of European homes emission-free.
Regardless of which solution we choose, this CO₂ must be captured. And what is captured also needs to be stored. This is where our business concept enters the picture. We want to transport and store CO₂ deep under the seabed in the North Sea. The NCS has the capacity to store 80 billion tonnes of CO₂, equivalent to 1000 years of Norwegian emissions.
That’s a service we can charge for. The more expensive emissions become, the more profitable it will be to store them. The ambition is to turn CO₂ storage into a new industry, and thus create new revenues and jobs. To do this, we need customers.
In 2022, Yara signed the world’s first cross-border agreement for transport and storage of CO₂. We’re also working to develop a pipeline that can transport CO₂ directly from Belgium or France to the Smeaheia storage site in the North Sea, a project we call CO₂ Highway Europe. The objective is to get started by 2030. With this pipeline in place, we can transport 20-30 million tonnes of CO₂ per year directly from Europe to the North Sea. We also have storage projects under way in Denmark, the UK and the US.
Things are moving at a greater scale and a faster pace than ever before. Does that mean that all the pieces will automatically fall into place as the years progress? No, there’s still plenty of work that needs doing. Success will require cooperation, technological development, political ambitions – and not least, more customers. But there is reason for optimism, because things are happening.
