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TotalEnergies Completes CO2 Storage of Northern Lights Facilities

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TotalEnergies SE (TTE - Free Report) , along with its partners Equinor ASA (EQNR - Free Report) and Shell plc (SHEL - Free Report) , announced the completion of the carbon dioxide (CO2) receiving and storage facilities of Northern Lights Joint-Venture in Norway.

Prospects for TTE’s Project

The facilities include a subsea injection facility for safe and permanent CO2 storage in a reservoir 2,600 meters below the seabed, a terminal to accept CO2 cargos, and a nearly 62-mile (100-kilometer) subsea pipeline to deliver CO2 to the offshore storage site.

Northern Lights is the world’s first commercial CO2 transportation and storage project. The first stage of the project was supported by the Norwegian government and has a capacity of 1.5 million tons of CO2 per year (Mt CO2/year), which was completely reserved by customers in Norway and continental Europe. Studies are currently underway for a second phase of capacity expansion to more than 5 Mt CO2/year.

With the first CO2 injection anticipated in 2025, Northern Lights is now prepared to accept and permanently store CO2 from European industries. One of the keystones for lowering emissions and providing a practical decarbonization strategy for European business is the development of CO2 transportation and storage services.

TTE Strengthens Its Carbon Capture & Storage Efforts

TotalEnergies strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. For residual emissions, the company is developing an industrial project for carbon storage. Supported by the basic skills of large-scale project management, gas processing and global science, TTE is on track to enable significant decarbonization of European businesses through projects such as Northern Lights in Norway, Aramis in the Netherlands and Bifrost in Denmark.

In March 2024, TTE entered into an agreement to purchase 100% of Talos Low Carbon Solutions LLC from Talos Energy, Inc. The company is set to acquire Talos’ carbon capture and storage (CCS) business for a total consideration of $148 million.

Growth Prospects

According to a Research Nester report, the global carbon capture and storage market was valued at $6.73 billion in 2023 and is expected to exceed $68.33 billion by the end of 2036, at more than 20% CAGR during 2024-2036.  

Along with TTE, Eni SpA (E - Free Report) is also set to take advantage of the expanding CSS market.

In Sept. 2024, Eni and Snam, a key energy infrastructure operator, have commenced CO2 injection at the Ravenna CCS project, achieving a milestone in Italy's journey toward industrial decarbonization. Phase 1 of the project is set to capture approximately 25,000 tons of CO2 per year from Eni’s renewable-powered natural gas treatment plant in Casalborsetti.

Eni’s long-term (three to five year) earnings growth rate is 5.72%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year decrease of 3.9%.

TTE’s Stock Price Performance

In the past three months, shares of TotalEnergies have lost 1.5% compared with the industry’s 5.9% decline.   

 

Zacks Investment Research
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TTE’s Zacks Rank

The company currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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