Ørsted and Equinor Partner in Major Carbon Removal Deal to Drive Negative Emissions

Ørsted and Equinor Partner in Major Carbon Removal Deal to Drive Negative Emissions

(IN BRIEF) Ørsted has entered into an agreement with Equinor to supply 330,000 tonnes of carbon dioxide removal (CDR) credits over ten years, as part of Ørsted’s Kalundborg CO2 Hub project. This project, starting in 2026, will capture 430,000 tonnes of biogenic CO2 annually from Ørsted’s biomass-fired plants and store it under the North Sea seabed, contributing to negative emissions. The sale of CDR credits helps finance the project and supports Equinor’s goal of reducing its net greenhouse gas emissions by 50% by 2030. Both companies emphasize their commitment to advancing carbon capture and storage technologies.

(PRESS RELEASE) FREDERICIA, 18-Sep-2024 — /EuropaWire/ — Equinor and Ørsted have expanded their collaboration through a landmark agreement where Ørsted will provide 330,000 tonnes of carbon dioxide removal (CDR) credits to Equinor over a ten-year period. This new agreement is part of Ørsted’s ambitious ‘Kalundborg CO2 Hub’ project, set to capture 430,000 tonnes of biogenic CO2 annually starting in 2026. The CO2 will be sourced from sustainable biomass at Ørsted’s biomass-fired combined heat and power (CHP) plants and stored under the North Sea seabed. This initiative directly contributes to the removal of CO2 from the atmosphere, thereby advancing the goal of achieving negative emissions.

The agreement represents a significant milestone for both companies and the wider carbon capture and storage (CCS) market. Ørsted’s Kalundborg project is still in the early stages of development, and the sale of CDR credits alongside support from the Danish Energy Agency has been essential to its financial viability. Biomass-based carbon capture and storage, while promising, remains costly, and agreements like this one help pave the way for broader adoption of these technologies.

For Equinor, this agreement is part of its strategy to reduce net greenhouse gas emissions by 50% by 2030 (from 2015 levels) across scope 1 and 2 emissions. CDR credits, like those from Ørsted, are allowed to account for up to 10% of this reduction goal, with the remainder being achieved through absolute emissions reductions.|

Commitment to Carbon Capture and Removal

Ørsted’s Senior Vice President and Head of Bioenergy, Ole Thomsen, commented on the agreement: “We are pleased to build on our existing partnership with Equinor, which already includes exploring CO2 storage options with Nordsøfonden. By securing this deal for CDR credits, we’re taking another critical step toward advancing carbon capture and storage technology, ensuring a sustainable future.”

Equinor’s Senior Vice President of Strategy & Business Development, Svein Skeie, also emphasized the significance of the agreement: “Our expanded collaboration with Ørsted demonstrates our shared belief that creating viable markets for the physical reduction and removal of carbon emissions will be key to achieving global emission targets.”

Supporting a Sustainable Future

Ørsted’s Kalundborg CO2 Hub and its partnership with Northern Lights, which oversees the CO2 storage under the seabed and is partly owned by Equinor, underscore the shared commitment to developing sustainable energy solutions. The partnership exemplifies how cross-sector collaboration can accelerate the transition toward a low-carbon economy by enabling large-scale CCS projects and building frameworks for the future of carbon markets.

About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,400 people. Ørsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group’s revenue was DKK 79.3 billion (EUR 10.6 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and X.

Media Contact:

Global Media Relations
Carsten Birkeland Kjær
+45 99 55 77 65
cabkj@orsted.com

SOURCE: Ørsted A/S