ExxonMobil’s Dutch subsidiary, XTO Netherlands Ltd., on Monday signed a Cooperation Agreement with Neptune Energy, Rosewood Exploration Ltd. and EBN Capital B.V. to advance the L10 large-scale offshore carbon capture and storage (CCS) project in the Dutch North Sea.
As the companies look to smash net-zero targets, Exxon announced that the deal encompasses the technical and commercial capabilities needed to create a robust carbon storage offering for industrial customers in the Dutch energy sector.
The oil major outlined that the intention behind the deal is to take the L10 carbon capture and storage development to the concept select stage in 2022 and to have the project front-end engineering design (FEED) ready by the end of the year. This will be followed by the submission of a storage licence application.
According to Neptune Energy’s Managing Director in the Netherlands, Lex de Groot, CCS is crucial for achieving the Dutch climate goals for 2030.
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“This Cooperation Agreement is a significant step in the development of the Neptune-operated L10 project which supports our strategy to go beyond net-zero and store more carbon than is emitted from our operations, scope 1, and sold products, scope 3, by 2030,” he pointed out.
A feasibility study for the project has already been successfully conducted.
And according to EBN’s Program Manager CCUS, Berte Simons, with no need to build new infrastructure, the companies are at an advantage.
“With our subsurface knowledge and experience on storage, we will be able to contribute extensively to the development of this project. The offshore storage of CO2 is pivotal in meeting climate goals and EBN is determined to contribute to a carbon-neutral energy system.”
As elaborated by Exxon, this stage of the L10 carbon capture and storage project has the potential to store 4-5 million tonnes of CO2 annually for industrial customers within depleted gas fields around the Neptune-operated L10-A, B and E areas; it represents the first stage in the potential development of the greater L10 area as a large-volume CO2 storage reservoir.
“ExxonMobil welcomes the opportunity to collaborate with industry and the government in support of the L10 carbon capture and storage project,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “Carbon capture and storage is a proven, ready-to-deploy technology that can help reduce emissions in some of the highest-emitting sectors and advance society’s net-zero goals.”
Exploratory discussions with industrial emitters from various sectors are continuing, ahead of the upcoming round for applications for sustainable energy transition subsidy scheme (SDE++) funding from Dutch authorities.
In Guyana’s case, it expects the companies to contribute to the fight against climate change by investing in emissions-reduction solutions. ExxonMobil has already been given the greenlight to conduct a carbon capture study.
The International Energy Agency (IEA) says carbon capture can play an important role in meeting global energy and climate goals. ExxonMobil estimates that there will be a US$4 trillion market for carbon capture by 2050.
