ORLEN, in collaboration with Norway’s Equinor – one of Europe’s largest energy firms – will investigate opportunities in Carbon Capture & Storage (CCS) technology. The management boards of both companies have recently signed a partnership agreement that focuses on the transportation and storage of carbon dioxide (CO₂) in Poland. This solution aims to lower CO₂ emissions released into the atmosphere, aiding in the decarbonization of various industries.
Source: ORLEN
As part of the agreement, ORLEN and Equinor will work together to identify potential CO₂ storage sites, including both terrestrial locations and sections of the Polish Baltic Sea. The next phase involves assessing the feasibility of joint projects based on these identified storage sites in Poland.
Equinor is a global leader in Carbon Capture and Storage, having commenced CO₂ storage in the offshore Sleipner field in 1996. Currently, the company participates in numerous large-scale CCS initiatives across North-West Europe and the United States. Notably, Equinor is involved in Northern Lights, the first cross-border CCS initiative that offers CO₂ storage as a service. As of September 2024, Northern Lights is ready to accept CO₂, with the first customer anticipated to deliver CO₂ by mid-2025. The first phase of Northern Lights provides an injection capacity of 1.5 million tonnes of CO₂ annually. Furthermore, Equinor possesses several storage licenses on the Norwegian Continental Shelf, as well as in Denmark, the UK, and the US. Last year, in conjunction with partners TotalEnergies and BP, they made the final investment decision (FID) on both the Northern Endurance Partnership, a CO₂ transport and storage solution, and Net Zero Teesside, a gas-fired power plant with post-combustion carbon capture capabilities.
Our collaboration with Equinor marks a major milestone in advancing the ORLEN Group’s strategic goals. We are joining forces with an experienced and driven partner to develop unique know-how in the CCS technology. Building on this knowledge, we aim to establish a new, forward-looking business area that will boost our decarbonisation potential. At the same time, the initiative has the potential to serve as a catalyst giving rise to an entire ecosystem of businesses that could grow, create value, and generate new jobs. This is how we fulfil our role as the energy transition leader
As part of its new strategy, ORLEN has pledged to attain an annual carbon capture, transport, and storage capacity of 4 million tonnes by 2035. A portion of this capacity will contribute to the ORLEN Group’s net-zero objective, primarily for its petrochemical and refining operations, while the remainder will be available as a service to other companies.
Building on an already well-established energy partnership, this agreement mark another step in our collaboration with Orlen. Both companies are committed to delivering energy security while progressing low carbon solutions and development of renewable energy. We look forward to working together with Orlen to identify potential CO₂ storage opportunities in Poland where the two companies could complement each other’s strengths
ORLEN’s objectives for CCS, along with its collaboration with the Norwegian partner, demonstrate the company’s ambitious decarbonization aspirations and comply with emerging European regulations. The EU’s Net-Zero Industry Act (NZIA) took effect in June 2024, designed to boost the competitive edge of European companies in zero-emission technologies and improve access to these solutions. Among other stipulations, the NZIA outlines specific targets for CCS capacity development, requiring the EU to achieve an annual CO₂ injection capacity of 50 million tonnes by 2030. The responsibility for achieving this target lies with companies involved in oil and gas extraction within the EU, including ORLEN.
Under the NZIA framework, CCS is expected to facilitate the decarbonization of industries with challenging CO₂ emissions due to technological limitations, particularly in sectors like cement, steel, and chemicals. For these industries, capturing carbon, transporting it to designated storage sites, and injecting it into deep geological formations is the only feasible method to prevent CO₂ emissions from entering the atmosphere. Thanks to CCS, companies in hard-to-abate sectors can maintain their operations within the EU, even as carbon reduction targets become increasingly stringent.
