Project Greensand awarded funding for CO2 storage in the North Sea

December 10, 2021

Magseis Renewables AS, a wholly owned subsidiary of Magseis Fairfield ASA, announced 17 August 2021 that it had entered into a memorandum of understanding (MoU) to join phase 2 of the Greensand carbon capture and storage (CCS) project consortium.

Wednesday 8 December 2021 the Danish Energy Agency announced that it has awarded 197 million DKK to the consortium behind Project Greensand for CCS (carbon capture and storage). The carbon storage project will support Denmark’s ambitions to reach a 70 percent CO2 reduction by 2030.

"We are very pleased and thankful for the trust that has been shown to the entire consortium behind Project Greensand. Carbon capture storage is one of the steps needed to reach the ambitious climate goals in Denmark, and we as a consortium are very proud to be allowed to contribute to that through this project,” says Mads Gade, Country Manager for INEOS Denmark.

The storage potential in Project Greensand is 0.5-1 million ton of CO2 per year from 2025, increasing to 4-8 million tons of CO2 per year by 2030. Hence, the Greensand area can account for all the CO2 storage proposed in the Danish Climate Program.

“We are pleased that Project Greensand has been awarded funding and look forward to continue the good collaboration with the consortium partners. We are proud to contribute with our industry leading OBN technology and imaging solutions for this important CCS project.”, says Renewables Director, Tone Holm-Trudeng.

About Greensand

  • The primary objective of the Greensand project is to safely and permanently store potentially up to 8m tonnes of CO2 per annum in the INEOS operated Siri area.
  • The storage potential, if achieved, will contribute significantly to Denmark’s 2030 overall emissions reduction target
  • The Greensand project has three phases: Appraisal, Pilot (Proof of concept) and Full project execution.
  • The Completed Appraisal phase had field owners INEOS, and Wintershall Dea, plus consortium members Maersk Drilling and Danish Government backed GEUS.
  • The project recently cleared a major hurdle as DNV GL independently certified that the Nini West field is conceptually suitable for injecting 0.45 million tons CO2 per year per well for a 10-year period, and that the subsea reservoir can safely contain the CO2.
  • Pilot phase (Proof of concept) planning is now getting underway with potentially start around Q4 2021 subject to the implementation of the agreements outlined in the Danish North Sea Agreement of Dec. 2020.
  • The FID for full-scale project will commence after proof of concept, planned FID in second half 2023, and will have an estimated delivery duration of around 24 months after which carbon storage could be operational from around 2025.
  • The Paleocene sandstone fields of the Siri Area in the Danish North Sea are located at an optimal depth of 1.5-2.2km and are encased in one of the most competent cap rocks in the North Sea. The area is geologically extremely stable and has retained gas and oil for 10-20 million years, the area constitutes a very safe permanent storage site for CO2.
  • In Phase 1, the Greensand Consortium demonstrated that viability of the development of a CO2 storage site. The assessment was certified by DNV. The Storage potential is 0.5-1 million ton of CO2 per year from 2025, increasing to 4-8 million tons of CO2 per year by 2030. Hence, the Greensand Area can account for all of the CO2 storage proposed in the Danish Climate Program.