ORLEN Group is acquiring a 50 % stake in the Polaris concession in the Barents Sea, which will be used for carbon dioxide storage. This is the result of an agreement between PGNiG Upstream Norway and the owner of the concession, Horisont Energi AS.

According to ORLEN Group, the transaction will contribute to the development of the company’s new business line related to the collection and management of industrial CO2 emissions. Polaris is one of the most advanced carbon storage projects on the Norwegian Continental Shelf.

“We are embarking on another project that will strengthen ORLEN’s position as a regional leader in the energy transition. CO2 capture and storage will be important for the implementation of the Company’s Climate Policy. It will also allow us to offer a new type of carbon management service. In the face of high CO2 emission allowance prices, CO2 storage will be crucial for maintaining the competitiveness of certain industries in Poland and other EU countries”, said Daniel Obajtek, President of the ORLEN Management Board.

Under the agreement between PGNiG Upstream Norway (PUN) of the ORLEN Group and Horisont Energi AS, PUN will take a 50 % stake in the Polaris concession and gain the status of its operator. This will allow it to leverage its field experience gained during more than 15 years of presence on the Norwegian Continental Shelf. The transaction is the result of a letter of intent signed by the companies in September this year and still requires approvals from the Norwegian administration.

The capacity of the geological structures of the Polaris concessions, attributable to PGNiG Upstream Norway’s share, is currently estimated at a total of around 100 million tonnes of carbon dioxide, which should enable storage operations for up to 25 years.

CO2 capture and storage or management is one of the solutions through which ORLEN will reduce emissions associated with its refining, petrochemical and mining operations by 25 % by the end of 2030.

Adrian Andrzejewski