Yara signs landmark agreement for offshore CO2 storage

Northern Lights CO2 receiving terminal (Northern Lights)

Posted on August 29, 2022 9:52 PM by

The Maritime Executive

Norwegian fertilizer manufacturer Yara has signed the world’s first cross-border CO2 transport and storage agreement with Northern Lights, Norway’s offshore carbon storage project. Both entities are based in Norway, but transport will be cross-border, delivering liquefied CO2 by ship from a Yara plant in the Netherlands to the injection facility at Northern Lights.


From the start of 2025, 800,000 tonnes of pure CO2 will be captured at the Yara Sluiskil plant in the Netherlands, then compressed, liquefied and transported to the northern lights well off Øygarden.


Northern Lights hopes this first-of-its-kind contract will set a standard for other industrial emitters in Europe who wish to consider offshore CO2 storage.


“Yara is our first commercial customer, filling our available capacity at Northern Lights. With this, we are establishing a market for the transport and storage of CO2. From the beginning of 2025, we will ship the first tonnes of CO2 from the Netherlands to Norway. This will demonstrate that CCS is a climate tool for Europe,” said Børre Jacobsen, Managing Director of Northern Lights.


Northern Lights is the transport and storage part of the Norwegian Longship project, which is 80% funded by the Norwegian government. As part of the funding agreement, Northern Lights is to develop a commercial business model and offer its services to the rest of Europe. The company is a JV, equally owned by Equinor, Shell and TotalEnergies.


Yara produces two million tonnes of ammonia per year, making it one of the largest manufacturers in the world. Conventional ammonia is a carbon-intensive product made from natural gas, and Yara’s plant in Heroya is one of Norway’s largest point emitters; the company is planning an electrification project to transition the plant to a zero-emissions future, eliminating approximately 800,000 tonnes of CO2 emissions per year.

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