Yara and Northern Lights have signed the world’s first commercial agreement on cross-border transport and storage of CO2. This is a major step forward for the decarbonisation of European heavy industry, opening up the market for cross-border transport and storage of CO2 as a service. It is also a major step towards achieving Yara’s own net zero goals.
Yara and Northern Lights have agreed on key commercial terms for transporting CO2 captured at Yara Sluiskil, an ammonia and fertilizer plant in the Netherlands, and permanently stored under the seabed off the western coast of Norway. When the final contractual details are confirmed, this will be the first ever cross-border CO2 transport and storage agreement. It will set the standard for other industrial companies across Europe looking to use Northern Lights – and other emerging CO2 transport options and stores in the North Sea – as a key part of their decarbonisation strategies.
Decarbonize heavy industry with CCS to meet climate goals
Yara Sluiskil has already reduced 3.4 million tonnes of CO2 emissions per year from its ammonia and fertilizer production since 1990. Significant volumes of carbon dioxide are reused in greenhouse plant production, as an ingredient for soft drinks and for other purposes such as urea and AdBlue, a diesel product to reduce harmful gases from diesel engines. From the beginning of 2025, 800,000 tonnes of pure CO2 will be captured, compressed and liquefied in the Netherlands, then transported to the Northern Lights store 2,600 meters below the seabed off Øygarden.
“There is an urgent need to act to decarbonize the industry and Yara is a precursor. I am very happy to report that we are now on the verge of eliminating CO2 emissions from our production plant in Sluiskil. This will take us one step closer to carbon-free food production and accelerate the supply of clean ammonia for fuel and power generation,” said Svein Tore Holsether, CEO of Yara International ASA.
“Yara is our first commercial customer, filling our available capacity at Northern Lights. With this we establish a market for the transport and storage of CO2. From the beginning of 2025, we will ship the first tonnes of CO2 from the Netherlands to Norway. This will demonstrate that CCS is a climate tool for Europe,” said Børre Jacobsen, Managing Director of Northern Lights.
Safe and proven CO capture, transport and storage2
Northern Lights is the transport and storage part of the Longship project, 80% funded by the Norwegian government. Building on over 20 years of offshore CO2 storage in Norway, the government has worked closely with Norwegian Industrial Emitters and Northern Lights to create the world’s first open access full value chain CCS model. As part of its funding, the government stipulated that Northern Lights develop a commercial business model and offer its services to the rest of Europe.
The Longship model shows that CCS is feasible, safe and profitable. He also helped develop a business model and a market to support it. Longship provides a platform for Norwegian companies and service providers to innovate, leveraging experience, first-mover advantage and significant offshore storage capacity – and it offers European industry a crucial decarbonization option and solutions to replicate.
About the Northern Lights
Northern Lights is developing an open and flexible infrastructure to transport CO2 industrial transmitters by ship to a receiving terminal in western Norway for interim storage, before being transported by pipeline for permanent storage in a geological reservoir 2,600 meters below the seabed. Operations are expected to start in 2024. The facilities are under construction and will enable Northern Lights to offer a safe and reliable shipping and storage service to industrial transmitters across Europe. With increased interest from industrial sectors in Europe, additional transport and storage capacity will be developed as demand increases. Northern Lights JV DA is a registered and incorporated joint liability (DA) partnership owned equally by Equinor, Shell and TotalEnergies. https://norlights.com/
Yara develops her knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a respected planet, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is to develop a nature-friendly food future that creates value for our customers, shareholders and society as a whole and provides a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital agricultural tools for precision farming and are working closely with partners across the food value chain to improve the efficiency and sustainability of food production. By focusing on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy-intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. We operate an integrated business model with approximately 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2021, Yara made $16.6 billion in revenue. https://www.yara.com
About Yara Clean Ammonia (YCA)
Yara develops her knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market that is expected to grow significantly over the coming decades. We aim to significantly strengthen our global leadership position as the world’s largest ammonia distributor, unlock green and blue value chains and drive the development of clean ammonia globally.
Leveraging Yara’s industry-leading experience in global ammonia production, logistics and trading, Yara Clean Ammonia strives to seize growth opportunities in low-emission fuels for transportation and power. , carbon-free food production and ammonia for industrial applications.
Yara Clean Ammonia operates the world’s largest ammonia network with 12 vessels and has access to 18 ammonia terminals and multiple ammonia production and consumption sites around the world through Yara. Revenue and EBITDA for the last 12 months were $3,638 million and $172 million, respectively, in the second quarter of 2022. Yara Clean Ammonia is headquartered in Oslo, Norway. https://www.yaracleanammonia.com