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Shell, Equinor & TotalEnergies' Northern Lights Secure New CCS Deal
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Key Takeaways
Northern Lights will transport and store up to 200,000 metric tons of CO2 annually for resundskraft.
CO2 from Helsingborg will move by truck and ship to permanent storage 2,600 meters beneath the North Sea.
The JV has seven industrial customers in four countries; Oresundskraft's service is targeted for Q4 2029.
Northern Lights, a joint venture owned by Shell plc (SHEL - Free Report) , Equinor ASA (EQNR - Free Report) and TotalEnergies SE (TTE - Free Report) , involved in the carbon capture and storage (CCS) business, has recently secured a new customer for its services. The joint venture company has inked an agreement with OresundskraftKraft & Varme, owned by the City of Helsingborg, to transport carbon dioxide from a waste-to-energy facility in Helsingborg for storage in a designated reservoir under the seabed in the North Sea.
Details on the Oresundskraft Deal
Per the terms of the agreement, CO2 will first be captured and liquefied at Oresundskraft’s Filbornaverket waste-to-energy plant in Helsingborg, Sweden. The liquefied CO2 will then be transported by truck from the facility to the Port of Halland in Halmstad. From there, the CO2 will be shipped to its receiving terminal in Øygarden, Norway, for permanent storage in a reservoir approximately 2,600 meters beneath the seabed. Oresundskraft is Northern Lights’ second customer from Sweden, following a contract signed with the Swedish district energy provider Stockholm Exergi in 2025.
Oresundskraft Targets Biogenic and Fossil CO2
The Filbornaverket facility is a waste-to-energy plant operated by Oresundskraft that handles household and industrial waste and uses it to produce steam, district heating and electricity for the local grid in Helsingborg. The carbon capture project is expected to help Oresundskraft capture biogenic CO2 and fossil CO2 emissions. The capture of biogenic CO2 can aid in the facility’s carbon removal efforts, while the capture and storage of fossil CO2 can directly reduce emissions.
Agreement Strengthens Nordic CCS Infrastructure
The Oresundskraft agreement is a significant development for Northern Lights as it strengthens the Nordic region's position as a leading CCS hub. Northern Lights is the first of its kind to allow the cross-border transportation and storage of CO2. The partners in the JV completed their first CO2 injection in 2025, marking the start of its commercial storage activities.
Under the agreement with Oresundskraft, Northern Lights will offer transportation and storage services for up to 200,000 metric tons of CO2 per year, giving the former a large-scale outlet for its captured emissions. Northern Lights is aiming to start operations under the contract in the fourth quarter of 2029, subject to the fulfillment of certain agreed conditions. With the addition of Oresundskraft, the project now has seven industrial customers across four countries. This indicates that Northern Lights is expanding its CO2 transportation and storage network and serving industrial emitters across Europe. A growing customer base may support increased utilization of the JV’s infrastructure and facilitate the expansion of its CCS operations.
About the Partners
Shell plc is one of the oil and gas supermajors headquartered in London, with operations spread across the globe. SHEL’s long-term strategy revolves around liquefied natural gas, considering the secular shift to cleaner-burning fuel for power generation worldwide, particularly in the Asia-Pacific region. Shell continues investing in projects that can support long-term production growth and reserve replacement so that the company can sustain earnings growth in the long run.
Equinor is a Norwegian integrated energy firm and the largest supplier of piped gas to Europe. EQNR’s Norwegian Continental Shelf remains the core long-term production anchor. Management raised its 2030 and 2035 NCS outlook by 100,000 barrels of oil equivalent per day and now targets 1.3 million barrels per day in 2035. The company is also a front-runner in the renewable energy space, investing in various projects, including power generation from solar and wind energy.
TotalEnergies is one of the largest integrated energy firms, with operations spread across multiple geographies. Headquartered in France, the company is increasing energy production from LNG and clean electricity. In fact, the company had 37.4 gigawatts of gross installed renewable power capacity by the end of the June quarter. The company is also a major upstream player with a strong production growth profile.
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Shell, Equinor & TotalEnergies' Northern Lights Secure New CCS Deal
Key Takeaways
Northern Lights, a joint venture owned by Shell plc (SHEL - Free Report) , Equinor ASA (EQNR - Free Report) and TotalEnergies SE (TTE - Free Report) , involved in the carbon capture and storage (CCS) business, has recently secured a new customer for its services. The joint venture company has inked an agreement with OresundskraftKraft & Varme, owned by the City of Helsingborg, to transport carbon dioxide from a waste-to-energy facility in Helsingborg for storage in a designated reservoir under the seabed in the North Sea.
Details on the Oresundskraft Deal
Per the terms of the agreement, CO2 will first be captured and liquefied at Oresundskraft’s Filbornaverket waste-to-energy plant in Helsingborg, Sweden. The liquefied CO2 will then be transported by truck from the facility to the Port of Halland in Halmstad. From there, the CO2 will be shipped to its receiving terminal in Øygarden, Norway, for permanent storage in a reservoir approximately 2,600 meters beneath the seabed. Oresundskraft is Northern Lights’ second customer from Sweden, following a contract signed with the Swedish district energy provider Stockholm Exergi in 2025.
Oresundskraft Targets Biogenic and Fossil CO2
The Filbornaverket facility is a waste-to-energy plant operated by Oresundskraft that handles household and industrial waste and uses it to produce steam, district heating and electricity for the local grid in Helsingborg. The carbon capture project is expected to help Oresundskraft capture biogenic CO2 and fossil CO2 emissions. The capture of biogenic CO2 can aid in the facility’s carbon removal efforts, while the capture and storage of fossil CO2 can directly reduce emissions.
Agreement Strengthens Nordic CCS Infrastructure
The Oresundskraft agreement is a significant development for Northern Lights as it strengthens the Nordic region's position as a leading CCS hub. Northern Lights is the first of its kind to allow the cross-border transportation and storage of CO2. The partners in the JV completed their first CO2 injection in 2025, marking the start of its commercial storage activities.
Under the agreement with Oresundskraft, Northern Lights will offer transportation and storage services for up to 200,000 metric tons of CO2 per year, giving the former a large-scale outlet for its captured emissions. Northern Lights is aiming to start operations under the contract in the fourth quarter of 2029, subject to the fulfillment of certain agreed conditions. With the addition of Oresundskraft, the project now has seven industrial customers across four countries. This indicates that Northern Lights is expanding its CO2 transportation and storage network and serving industrial emitters across Europe. A growing customer base may support increased utilization of the JV’s infrastructure and facilitate the expansion of its CCS operations.
About the Partners
Shell plc is one of the oil and gas supermajors headquartered in London, with operations spread across the globe. SHEL’s long-term strategy revolves around liquefied natural gas, considering the secular shift to cleaner-burning fuel for power generation worldwide, particularly in the Asia-Pacific region. Shell continues investing in projects that can support long-term production growth and reserve replacement so that the company can sustain earnings growth in the long run.
Equinor is a Norwegian integrated energy firm and the largest supplier of piped gas to Europe. EQNR’s Norwegian Continental Shelf remains the core long-term production anchor. Management raised its 2030 and 2035 NCS outlook by 100,000 barrels of oil equivalent per day and now targets 1.3 million barrels per day in 2035. The company is also a front-runner in the renewable energy space, investing in various projects, including power generation from solar and wind energy.
TotalEnergies is one of the largest integrated energy firms, with operations spread across multiple geographies. Headquartered in France, the company is increasing energy production from LNG and clean electricity. In fact, the company had 37.4 gigawatts of gross installed renewable power capacity by the end of the June quarter. The company is also a major upstream player with a strong production growth profile.