Northern Lights Adds Third CO2 Carrier to Expand CCS Network

Why It Matters

Expanding the fleet accelerates Europe’s carbon capture and storage rollout, enabling industrial emitters to meet climate targets and creating a new cross‑border CO₂ logistics market.

Key Takeaways

• Third LCO₂ carrier boosts Northern Lights fleet capacity
• Vessel Northern Phoenix will transport Yara’s CO₂ to Øygarden terminal
• Project aims to start commercial cross‑border CO₂ shipments soon
• JV partners include Equinor, TotalEnergies, Shell, Ørsted, Stockholm Exergi
• Storage begins 2025, supporting Norway’s Longship CCS initiative

Pulse Analysis

Europe’s push toward large‑scale carbon capture and storage (CCS) hinges on reliable transport infrastructure, and Norway’s Northern Lights project is emerging as a cornerstone. By linking industrial emitters to a subsea storage hub beneath Øygarden, the initiative provides a template for cross‑border CO₂ movement, a capability that has been limited by a lack of dedicated vessels. The addition of a third liquefied CO₂ carrier, Northern Phoenix, signals a maturing logistics chain that can handle increasing volumes as more companies commit to decarbonisation pathways.

Northern Phoenix joins two earlier ships, effectively tripling the JV’s shipping capacity. Designed specifically for liquefied CO₂, the vessel will collect emissions from Yara’s fertilizer plants and deliver them to the receiving terminal, where pipelines will convey the gas to the storage reservoir. This operational step aligns with the JV’s timeline to commence commercial transport ahead of the 2025 injection start date. The fleet expansion also underscores the collaborative nature of the project, with equity held by energy majors Equinor, TotalEnergies and Shell, and off‑take agreements from Ørsted, Stockholm Exergi and others, broadening the customer base and revenue prospects.

The broader market impact is significant. A scalable, maritime CO₂ transport solution lowers barriers for European industries seeking to offset emissions, potentially unlocking billions in investment for CCS projects. It also reinforces Norway’s Longship ambition to become a continental hub for carbon storage, attracting foreign capital and fostering regulatory frameworks that support cross‑border carbon markets. As the fleet grows, the Northern Lights model could be replicated in other regions, accelerating global decarbonisation efforts.