Britain's INEOS And Partners to Invest in CO2 Storage Off Denmark

OSLO, Dec 10 (Reuters) - Chemicals group INEOS has taken a final investment decision with partners to build a CO2 storage project off Denmark, potentially the first such EU project to start operations, the firm owned by British billionaire Jim Ratcliffe said on Tuesday. The Greensand Future project aims to inject up to 400,000 tonnes of CO2 annually for permanent storage by late 2025 or early 2026.

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The Greensand Future project was initiated by the INEOS-led consortium a few years ago, with the Danish government awarding it a 197 million Danish crown grant in 2021. The storage project is part of Denmark's and the EU's climate objectives, with INEOS emphasizing its alignment with long-term sustainability goals.

INEOS declined to disclose the size of the investment in the storage facility, citing commercial reasons and ongoing negotiations. However, the project opens the way for total investments of more than $150 million in a broader value chain of CO2 liquefaction, transportation, and storage.

Greensand Future is the third CO2 project in the North Sea to take a final investment decision, following the $621 million Northern Lights project in Norway and the $1.3 billion Porthos project in the Netherlands. "Greensand Future will be the first CO2 storage facility in operation in the EU supporting both Danish and EU's climate objectives," said INEOS Chairman Jim Ratcliffe.

Northern Lights in non-EU member Norway is a joint venture between Equinor, Shell, and TotalEnergies, completed in September and expected to begin CO2 injection in 2025. Similarly, the Porthos project at Rotterdam's port aims to start injecting CO2 into depleted gas fields on the Dutch continental shelf in 2026.

INEOS’ partners in the Danish project are British oil and gas firm Harbour Energy and Nordsoefonden, which manages the Danish state's interests in offshore oil and gas licenses. The project will reuse existing wells to inject CO2, significantly reducing costs compared to new installations.

Biomethane plants already separate CO2 from methane, meaning that CO2 only needs to be liquefied before transport, avoiding the need for expensive capture installations. INEOS said the storage capacity could be gradually expanded to up to 8 million tonnes by 2030, depending on demand.

($1 = 11.1154 Norwegian crowns)