Noreco Successful Grant of EUDP Funding from Danish Authorities for CCS Project Bifrost
OSLO, Norway, Dec. 9, 2021 /PRNewswire/ -- Norwegian Energy Company ASA ("Noreco" or the "Company") is together with its partners in Project Bifrost pleased to announce the successful award of funding under the 'Energy Technology Development and Demonstration Programme' (EUDP), a Danish public subsidy scheme. Project Bifrost's funding request of DKK 75 million was met in full by the Danish authorities and is a key enabler in maturing a CO2 transportation and storage concept in the Danish North Sea.
The scope of the project, which commences in 2022, includes the development and selection of the CO2 transport and storage concept at the Danish Underground Consortium (the "DUC") Harald field in the Danish North Sea. The Bifrost storage will have an expected startup storage capacity of 3 million metric tons of CO2 per year (m/tpa). In addition, Project Bifrost includes a study to qualify the potential use of additional DUC North Sea reservoirs as they become available, as well as the possibility to use the existing pipeline infrastructure connecting the DUC fields to Denmark. Reusing the pipeline infrastructure to Danish shore could become the core of a national CO2 transportation system, and is a first step to connect to a future European cost and climate efficient CO2 transportation system. This will be matured towards a final investment decision (FID) if the development and demonstration program proves successful.
"We are proud to announce the successful grant of EUDP funding for Project Bifrost. Our assets in the Danish North Sea, especially the unique pipeline infrastructure, have the potential to be an important enabler for establishing Denmark as a CCS hub. The use of existing infrastructure for carbon capture and storage is a highly attractive alternative from both a climate and economic perspective when oil and gas production gradually cease," said John Hulme, Chief Operating Officer in Noreco.
"This evening's announcement is an important step for Noreco, both as a partner in Project Bifrost and as an independent player with strong energy transition ambitions. We believe the future needs a balanced energy mix that safeguards access to reliable and affordable energy sources. We are committed to helping deliver this through our participation in the Tyra redevelopment, which will produce enough gas to power the equivalent of 1.5 million homes in Denmark with 30% lower emissions. We expect CCS to play an increasingly important role in the future and the granting of EUDP funding will strongly support Noreco and our Project Bifrost partners in delivering a concept for the DUC that continues our contribution to the energy transition while also unlocking long-term value for our shareholders," said Euan Shirlaw, Acting Managing Director & CFO in Noreco
The Bifrost CCS partnership consists of the Danish Underground Consortium (Noreco 36.8%, TotalEnergies 43.2% and Nordsøfonden 20%) who produces 85% of the oil and 97% of the gas from the Danish North Sea, Ørsted who is owner of the pipelines connecting the DUC fields to shore, and The Technical University of Denmark who will be academic partner.
Cathrine Torgersen, EVP Investor Relations & Communications
Phone: +47 915 28 501
About Norwegian Energy Company ASA:
Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The Company's shares are listed on the Oslo Stock Exchange (ticker NOR). For further information, please visit: www.noreco.com.
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