OSLO, Jan. 11 (Xinhua) -- Norway has awarded the country's first exploitation permit for carbon dioxide storage on the Norwegian Continental Shelf to Equinor, the energy company formerly known as Statoil.
The area allocated for storage of carbon dioxide is located near the Troll oil and gas field and was announced in July 2018, the Norwegian Ministry of Petroleum and Energy said in a statement.
Equinor is currently performing front-end engineering and design (FEED) studies on storage with project partners Shell and Total. The storage solution is part of the large-scale carbon capture and storage (CCS) project in Norway.
Equinor and its partners will now mature the storage concept towards a plan for development and operations (PDO) scheduled for delivery in 2019. An investment decision for the Norwegian full-scale CCS project is expected in 2020-2021.
"The government has an ambition to realize a cost-effective solution for full-scale carbon capture and storage in Norway, given that this will result in international technology development," Minister of Petroleum and Energy Kjell-Borge Freiberg said.
"The companies' effort to mature a storage solution is a prerequisite for a successful project," he said.
The allocation of an exploitation permit is necessary to continue the FEED studies for a carbon dioxide storage solution. The FEED studies will also provide more accurate cost estimates necessary for an investment decision.