On June 17, the Norwegian Ministry of Energy has granted official approval to Northern Lights JV for its Phase 2 development and operation plan (PDO), marking a significant advancement in Europe’s carbon capture and storage infrastructure.
The approval comes three months after the joint venture’s final investment decision in March to expand its annual CO₂ transport and storage capacity from 1.5 million tonnes to at least 5 million tonnes. The €1.3 billion expansion project benefits from funding through the EU’s Connecting Europe Facility for Energy (CEF Energy) program, with majority financing coming from private sector investments.
“This approval represents a quantum leap for Norway’s carbon management infrastructure,” commented Tim Heijn, Managing Director of Northern Lights. “With the PDO now secured, we can accelerate deployment of expanded services to meet growing demand from industrial clients across Europe.”
Industry analysts note the project has rapidly gained commercial traction, recently signing Stockholm Exergi as its third anchor client. The Swedish energy company will deliver up to 900,000 tonnes of CO₂ annually from its Stockholm bioenergy plant. These volumes complement existing contracts with Dutch fertilizer producer Yara and Danish energy firm Ørsted.
The expanded facility will also service Norwegian industrial emitters Hafslund Celsio and Heidelberg Materials Cement as part of Norway’s flagship Longship CCS initiative. Market observers highlight that Northern Lights’ project pipeline now represents one of the most comprehensive carbon management solutions under development in Europe.
“The timely regulatory approval demonstrates Norway’s commitment to establishing itself as Europe’s carbon storage hub,” said a senior analyst at Oslo-based Rystad Energy. “This expansion positions Northern Lights to capture a significant share of the anticipated €50 billion European CCS market by 2035.”
The project’s backers emphasize its potential to create a replicable model for commercial-scale carbon management, with Phase 2 designed to accommodate future capacity increases beyond the initial 5 million tonne target.