Equinor's Northern Lights Carbon Storage Project: A Key Milestone in Climate Change Mitigation

Equinor has launched the Northern Lights project, a carbon capture and storage initiative in the North Sea with Shell and TotalEnergies. The project has begun injecting CO2 into a designated reservoir, with a capacity to store 1.5 million metric tons of CO2 annually for 25 years. Analysts predict a "Hold" rating for Equinor ASA stock and a potential downside from the current trading price based on GF Value estimates.

Equinor, in collaboration with Shell and TotalEnergies, has launched the Northern Lights project, a pioneering carbon capture and storage (CCS) initiative in the North Sea. This joint venture marks a significant milestone in global decarbonization efforts, with the project beginning to inject CO2 into a designated reservoir, capable of storing 1.5 million metric tons of CO2 annually [1].

The Northern Lights project, operational since 2025, is the world's first cross-border CCS facility. It has successfully stored the first CO2 volumes in its 2,600-meter-deep geological reservoir in the North Sea. This achievement demonstrates the viability of carbon capture, transport, and storage as a scalable industry [2].

The project's Phase 1 infrastructure includes a CO2 receiving terminal in Norway, a 100-kilometer subsea pipeline, and injection facilities. By 2028, the Phase 2 expansion will increase annual CO2 storage capacity to 5 million tonnes, supported by €131 million EU funding and Norway's Longship initiative covering 80% of Phase 1 costs [1].

Analysts predict a "Hold" rating for Equinor ASA stock, with a potential downside from the current trading price based on GF Value estimates. Despite this, the project's strategic value in global decarbonization and its commercial viability are undeniable. Equinor's long-term CCS ambitions and diversified energy portfolio make it a compelling play on the energy transition [1].

References:
[1] https://www.ainvest.com/news/equinor-breakthrough-offshore-carbon-storage-scalable-ccs-model-global-decarbonization-2508/
[2] https://energy-analytics-institute.org/2025/08/25/equinor-stores-first-co2-volumes-at-northern-lights/