Orlen Withdraws from Polaris CO2 Storage Project in Norway, Citing Low ROI
(Reuters) — Polish refiner Orlen's Orlen Upstream Norway unit has decided to withdraw from the Polaris carbon storage project in the Norwegian Barents Sea due to an insufficient return on investment, the company said on Monday.
Orlen had initially expected the project to have the capacity to inject 2 to 6 million metric tons a year of CO2. However, geological and geophysical analyses of its structure revealed the potential to be at the lower end of this range, it said.
The company said that despite the setback it remained committed to developing its carbon capture and storage operations, aiming to reach a capacity to inject or utilize 3 million tons of CO2 annually by the end of 2030.
Orlen is currently exploring other CCS projects and programs that align with its risk and profitability expectations, it added.
In response to Orlen Upstream Norway's withdrawal, Norwegian energy firm Horisont Energi, the Polaris project's owner, said it was exploring alternative strategies to advance the project.
These include ongoing discussions with the ministry of energy and potential new license partners.
"Polaris has already documented its reservoir capacity and technical CO2 storage feasibility, establishing it as a technically mature project", co-CEOs Bjørgulf Haukelidsæter Eidesen and Leiv Kallestad said in a statement.
"Horisont Energi will now consider the options of how to bring the Polaris project forward as a competitive alternative for the Barents Blue Project" they added.
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