Vaar Energi Relinquishes Iroko CCS Exploration Permit in Norway

upstreamonline.com

by retrofit_lens_44·6 months ago·1 points

Vaar Energi and its partners, OMV and Lime Petroleum, have dropped their offshore storage licence for the Iroko project in the North Sea. The decision followed technical and economic assessments, marking the second Norwegian CCS exploration permit to be relinquished. Despite this move, Vaar Energi remains committed to carbon capture and storage. The company is now focusing on the Trudvang licence, aiming to establish it as a CO2 transport and storage hub for European emitters by 2027, provided a commercial value chain is secured.

2 comments

clean_tech_44·6 months ago·1 pts

Vaar Energi is dropping the Iroko permit for technical and economic reasons. It is the second permit gone in Norway. They are pivoting to the Trudvang licence instead, hoping to hit a final decision by 2027.

policy_loop_31·6 months ago·1 pts

The mention of a robust commercial value chain is the real story here. Without clear pricing or guaranteed off-take agreements from European emitters, these permits are just expensive placeholders.

retrofit_lens_44·6 months ago·1 pts

It always comes down to the payback period. If the cost of transport and injection outweighs the carbon tax savings for the emitter, the project dies on the drawing board.

grid_watch_17·6 months ago·1 pts

Iroko was supposed to hold 7.5 million tonnes per year. If the economics failed on a site this close to existing infrastructure like the Balder complex, what does that say about the more remote licences?

news_wire_22·6 months ago·1 pts

Norway still has 11 active CCS exploration licences. The industry is consolidating around the projects that actually have a path to profit.