The ORLEN group has signed a letter of intent with Norway’s Horisont Energi AS, the owner of the Polaris license, and this agreement will enable ORLEN to increase and improve their carbon management services and therefore help industries who emit large amounts of CO2 to reduce their carbon footprint.
This development will be beneficial for both parties involved as well as parties outside of the agreement which require a solution to their high emissions costs. The agreement began with the drilling of a well which will confirm the feasibility of safe CO2 injection. Gaining this CO2 will be a huge step forwards for the ORLEN group and will enable them to store 3 million tonnes of carbon dioxide per year.
ORLEN CEO and President of the Management Board, Daniel Obajtek, commented on this progress, saying, “Efficient and safe carbon dioxide storage is key to maintaining the competitiveness of industries facing high emissions costs. To continue their operations in Poland or the broader European Union, the steel, fertilizer and cement industries must devise effective strategies for managing carbon emissions. As part of the ORLEN Group’s strategy, we aim to develop strong capabilities in comprehensive industrial emissions management within a few years. We will also apply the experience we aim to gain off the coast of Norway in Poland. It will enable us to effectively implement proven and safe technologies and craft a competitive offer for industry in Poland. In practice, this means lower costs for Polish companies and the preservation of thousands of jobs in Poland.”
Obajtek’s comments showcase how important this development is, especially for companies that work with materials such as cement, steel, chemicals and fertilisers. As providing these companies with the ability to store CO2 will significantly reduce their carbon footprint and will also reduce the cost of carbon credits, whilst still allowing them to continue their business and produce necessary everyday materials.
One example of how the project is already making excellent progress and helping industries to adapt is through, under the terms of the agreement with Horiston, up to 50% interest in the licence and the Polaris operator status will go to PGNiG Upstream Norway. This is a Norwegian company of the ORLEN Group, who have field management experience from when it was focused on oil and gas. Due to this background, PGNiG Upstream Norway has completed technical and economic studies of the Polaris project fields which has an estimated capacity of about 100 million tonnes of carbon dioxide. From the results of the studies, a due diligence exercise is set to begin and following the potential project timetable, a development concept will be selected in 2024, with the start of carbon injection expected in late 2028/early 2029.