Aker Solutions has been awarded a significant contract for the second phase of the Northern Lights carbon storage project by Equinor, acting on behalf of the Northern Lights joint venture. This contract follows the successful completion of Phase 1, which was delivered in 2024.
Northern Lights is the world’s first cross-border facility for CO₂ transport and storage. With its first phase already operating, it is prepared to receive and securely store CO₂. Carbon capture and storage will be a key component of Norway’s climate strategy
Northern Lights Phase 2 - CCS Plant Expansion
Northern Lights Phase 1 is a key component of Norway’s Longship project, designed to establish a full-scale value chain for carbon capture, transport, and storage. The initial phase is now operational and ready to receive CO2 emissions from both Norwegian and European industrial sources.
Phase 2 aims to expand storage capacity from 1.5 million to at least 5 million tonnes of CO2 annually. This expansion is supported by funding from the Connecting Europe Facility for Energy (CEF Energy) program.
What is Carbon Capture and Storage (CCS)?
Carbon Capture and Storage (CCS) is a process that captures carbon dioxide (CO₂) emissions from industrial sources, preventing them from entering the atmosphere.
The captured CO₂ is then transported, typically via pipelines, and stored in deep geological formations, such as depleted oil and gas fields or saline aquifers. This technology plays a crucial role in reducing greenhouse gas emissions, particularly in industries that are difficult to decarbonize, such as cement, steel, and energy production.
Aker Solutions as the EPC Contractor for phase 2
Aker Solutions’ scope of work encompasses the engineering, procurement, and construction (EPC) of onshore facilities. This contracting framework is widely used in complex industrial projects, particularly by owners (in this case, Equinor) with well-defined project outcomes. From an owner’s perspective, the primary rationale for adopting an EPC contract is to transfer risk to the contractor while leveraging its expertise to develop and execute the project efficiently.
Aker confirmed that it intends to use its workforce across multiple office locations, including Fornebu and Stord in Norway, as well as Mumbai, India.
“This contract is significant for Aker Solutions and aligns well with our strategy and ability to deliver standardized solutions for projects in the CCUS value chain. This is the fourth project with CO2 storage solutions which we are executing, and this journey has enabled us to continuously reduce costs. Northern Lights strengthens Norway’s position as a leader in CCS projects globally, and we are proud to be part of this important initiative,” said Henrik Inadomi, Executive Vice President for New Energies at Aker Solutions.
Project Timeline and Strategic Implications
Work on Northern Lights Phase 2 is scheduled to commence in the second quarter of 2025, with completion expected by 2028. Aker noted that the contract features a balanced risk-reward structure, incorporating aligned incentives to ensure efficiency and safety.
The Northern Lights project represents a significant step toward reducing industrial carbon emissions and reinforces Norway’s leadership in global CCS initiatives. The expansion will not only enhance CO2 storage capacity but also contribute to the ongoing development of sustainable energy solutions.
Related Project and News – Carbon Capture Projects
- Santos secures financing for Moomba CCS Project in South Australia
- Aker Solutions secures FEED contract for Celsio’s CCS Terminal in Oslo
- Mitsubishi-Worley JV secures FEED Contract for Padeswood CCS Project in the UK
- Technip will be the FEED Contractor for the Viking CCS project from Harbour Energy-BP JV
