Northern Lights report documents establishment period

A new report from Northern Lights presents results achieved during the project’s establishment period, from 2021 to 2025.

The report describes how Northern Lights has contributed to the Norwegian Government’s goals for carbon capture and storage, by moving from construction to operation, demonstrating safe CO₂ transport and storage, and supporting regulatory development, cost reduction and knowledge sharing.

Oslo CCS: Standardization and Early Decisions Had Major Impact

Oslo CCS used the first year of constructing the CO₂ capture facility to focus on standardization, design simplification, and contract strategy.

Oslo CCS at Klemetsrud in Oslo

During 2025, Oslo CCS worked on several measures aimed at optimizing design and reducing complexity in the project. The report describes how the project evaluated alternative solutions for tanks, piping systems, technical buildings, and electrical installations.

At the terminal area in the Port of Oslo, tank capacity was optimized and several structural solutions were simplified. The project also highlights the use of standardized supplier products and increased prefabrication as important measures.

According to the report, early dialogue with suppliers helped identify solutions that could reduce both engineering work and construction costs. These experiences build further on what the project has previously highlighted regarding the importance of early-phase work and FEED quality, in the execution of large-scale CCS projects.

Experiences with Established Industry Standards

The report highlights the use of established oil and gas standards in an onshore CCS project. The project points out that standards provide robust and proven solutions, but may also lead to extensive documentation requirements and high specification levels.

It is important to assess which requirements are necessary, and which can be better adapted to onshore facilities. This is highlighted as particularly relevant during the FEED phase, before contracts are awarded and technical solutions are finalized.

At the same time, the project describes how several design decisions and standardization measures were used to reduce complexity and improve project executability.

Contract Model Highlighted

Oslo CCS also describes its experiences with the contract strategy selected for the project. The main contract was awarded to a joint venture between Aker Solutions and SLB Capturi through an EPCIC model with a target price structure and so-called “pain/gain” mechanisms.

The report states that the model contributed to collaborative cost control. It provided the parties with shared incentives related to project execution.

At the same time, the need to establish common work processes, reporting routines, and management systems across the organizations is emphasized. The project also highlights the importance of clearly defined roles and responsibilities between the project owner and contractors.

Risk Management Followed the Project Throughout the Year

Risk management is a central in the project’s experience report. Oslo CCS describes how the project established regular risk workshops, and integrated risk follow-up into ongoing project management.

The report shows that risk management has been an integrated part of the project since the start of the construction phase. Around 150 risks were identified and followed up during 2025. Among the factors considered particularly important were regulatory approvals, technical maturity, supplier deliveries, and coordination between contractors and the project owner.

According to the report, regular risk workshops, design reviews, and experience transfer from other CCS projects have been important tools for reducing uncertainty early in the project.

Experiences Will Be Shared Further

A key purpose of the report is to contribute to learning across the CCS sector. Oslo CCS describes how the project has drawn on experiences from projects such as Brevik CCS and Northern Lights – and how knowledge transfer has been integrated into the engineering and planning work.

The project describes the experiences as particularly relevant for large-scale CCS facilities that are to be integrated into existing industrial areas or urban environments – both in Norway and internationally.

Oslo CCS: Experiences for the Next Phase of Carbon Capture

A new report from Oslo CCS summarizes experiences gained during the first year of constructing the CO₂ capture facility – covering everything from project management and regulatory processes to technical solutions and collaboration.

Hafslund Celsio (Oslo CCS) at Klemtesrud in Oslo.

Oslo CCS is part of Longship. It will capture approximately 350,000 tonnes of CO₂ annually from the waste-to-energy plant at Klemetsrud. This corresponds to around 90 percent of the facility’s emissions. The project is described as one of the world’s first full-scale carbon capture facilities at a waste-to-energy plant.

By the end of 2025, the main contracts had been awarded, groundworks had commenced. At this point round 70 percent of the procurement packages had been formally allocated. The new experience report summarizes the period from February to December 2025. This is the first year following the investment decision made in January same year.

Early-Phase Work Highlighted as Critical

A recurring theme throughout the report is the importance of early-phase work and quality in the FEED phase. The project points out that many key cost and design decisions are, in practice, determined before the construction phase begins. Opportunity for major cost reductions becomes more limited once the project moves into construction and detailed engineering.

Oslo CCS therefore emphasizes the importance of allowing sufficient time in the FEED phase. This include early standardization of solutions, clear contract strategies, and early involvement of operations and maintenance teams. The project highlights several measures aimed at reducing complexity. This includes the use of standard products, more compact plant solutions, and increased prefabrication.

Regulatory Processes Required Extensive Coordination

The report describes regulatory processes as a central part of project execution. Several permits and approvals had to be managed in parallel. The project notes that processes were closely interconnected and required significant resources and coordination.

Among the key lessons highlighted are the importance of early dialogue with authorities. This implied close follow-up of application processes, and access to specialized expertise in technical safety and risk analysis.

The report specifically refers to work related to the DSB application. This include various exemptions linked to zoning regulations and building height restrictions at Klemetsrud.

Knowledge Transfer from Brevik and Northern Lights

Oslo CCS describes knowledge transfer as an important element of the project. In particular, the report highlights close interaction with the Brevik CCS and Northern Lights projects in Øygarden. The project team conducted site visits, meetings, and follow-up of technical solutions. All based on experiences from these facilities. Individuals with experience from other CCS projects have been involved both on the owner’s side and among the main contractors. This contributed to the early identification of challenges related to design maturity, interface management, construction, and execution strategy.

Risk Management and Collaboration at the Core

By the end of 2025, the project had identified and was actively managing around 150 risks. The report describes how the project established regular risk workshops. In addition, systematic follow-up of risk owners, and integration between risk, cost, and schedule management.

Also collaboration between Hafslund Celsio, contractors, and authorities is highlighted as important for progress. The EPCIC contract with the Joint Venture between Aker Solutions and SLB Capturi supported openness and cost awareness throughout the project.

Oslo CCS also notes that collaboration between different organizations required the gradual establishment of common routines, systems, and work processes during project execution. Finally, the report concludes that the experiences from Oslo CCS may be relevant for future large-scale CCS projects. Particularly projects that are to be integrated into existing industrial facilities or urban environments.

Gassnova: Future CCS Projects Could Be Less Expensive

The report “Potential for Cost Reductions in the CCS Value Chain” from Gassnova is based on valuable dialogue with industry stakeholders, and insights gained from the development of the Longship project. The overall analysis highlights how the CCS value chain could become both more affordable and more efficient in the future.

Longship demonstrates that CCS is safe and technically feasible, but first-generation projects are challenging and expensive. – This report identifies where the greatest cost-saving potential lies in the CCS value chain. The next step is to translate this knowledge into tangible improvements for the future, concludes project manager Ingrid Sørum Melaaen of Gassnova.

Longship as a Learning Arena

The Longship project demonstrates a full-scale value chain for carbon capture and storage, and includes Brevik CCS, Northern Lights, and Oslo CCS. The report focuses specifically on Brevik CCS and Northern Lights, while Oslo CCS is not included in the analysis.

– The report covers technological, economic, and regulatory lessons from the project’s first phase. The goal has been to identify cost-reduction drivers across the entire value chain – from capture to storage – so that future projects can be carried out faster and more cost-effectively. We emphasize that technology development, tailored regulations, and appropriate industrial practices are key areas to achieve this, says Ingrid Sørum Melaaen, who led the Gassnova project team that authored the report.

Report: Potential for Cost Reductions in the CCS Value Chain (2025)

Costs in Longship

The original cost estimate for Longship was NOK 25.1 billion (2021 value), including ten years of operations, with the Norwegian government as the main financial contributor. In the realized Longship project, roughly two-thirds of the investments went into CO₂ infrastructure.

– However, this picture changes under a hypothetical scale-up to 1.5 million tonnes of CO₂ per year across the full value chain. In such a scenario, the capture facilities and integration with emission sources would account for up to 65 percent of the costs. This is precisely where the greatest potential for improvement lies, says Sørum Melaaen.

Traffic Light Analysis Highlights Weak Points

A central element of the report is a so-called “traffic light analysis.” This evaluates technology readiness, supplier markets, customer competence, contract models, regulations, industrial practices, and scaling effects across the entire value chain: integration, capture, transport, receiving terminal, and storage. Capture, compression, and interim storage receive the most “red lights.”

Adjusting Regulation and Practice

The report further points out that current regulations are largely based on offshore standards. This has led to unnecessary costs for land-based facilities, partly because the requirements are not adapted to CO₂. Gassnova recommends that the regulatory framework be reviewed and adjusted to provide a more appropriate and cost-effective foundation. In addition, the report highlights that strengthening buyer competence and improving contract models, could result in substantial savings in future projects.