Climeworks and Northern Lights Partner for Carbon Dioxide Removal

Climeworks, a Swiss direct air capture technology firm backed by venture capital, is collaborating with Northern Lights, a joint venture involving the Norwegian government and major European energy companies. This partnership aims to establish a comprehensive system for capturing carbon dioxide directly from the atmosphere and securely storing it underground.

A Full-Chain Carbon Dioxide Removal Service

The collaboration could lead to a new business offering carbon capture and sequestration services to businesses globally. Successful implementation would represent a complete carbon dioxide removal service, deemed essential for reversing global climate change by both companies.

Northern Lights and The Longship Project

Northern Lights was established in March as a joint venture between Equinor, Shell, and Total. Its core function is to provide processing, transportation, and long-term underground storage for captured carbon dioxide. This initiative is a key component of Norway’s “The Longship Project,” focused on the safe and permanent storage of carbon emissions.

The Need for Atmospheric CO2 Removal

Børre Jacobsen, Managing Director of Northern Lights, emphasized the growing recognition of the need to increase capacity for removing CO₂ from the atmosphere. He stated that, combined with secure storage, direct air capture holds the potential to restore balance to the carbon cycle.

Negative Emissions for a Wider Range of Sectors

The companies hope to demonstrate that integrating Northern Lights’ facilities with Climeworks’ direct air capture technology can contribute to negative emissions. This would enable companies outside of heavy industry to achieve carbon neutrality or even become carbon negative.

Challenges and Considerations

However, the project faces several challenges, highlighting both the promise and potential difficulties inherent in direct air capture and sequestration initiatives.

Establishing a Viable Carbon Price

A crucial issue is establishing a global price for carbon dioxide emissions that would make these projects economically feasible. Currently, only California’s Low Carbon Fuel Standard provides financial support for direct air capture, offering up to $200 per ton.

“This price range is the price range that will be needed to make this full chain… really going from the atmosphere to direct air capture to underground storage and monitoring,” explained Christoph Gelbad, co-chief executive and co-founder of Climeworks. This level of pricing is essential for infrastructure development and financing.

This price point is at the upper end of discussions among world leaders regarding carbon emission costs, and significantly lower than China’s current carbon pricing.

The Scale of the Challenge

Beyond pricing, the sheer scale required to significantly impact global emissions presents a substantial hurdle.

Gelbad acknowledged the magnitude of the problem, stating that science indicates a need to remove 10 to 20 billion tons of CO₂ annually. He noted that while direct air capture will need to reach a gigaton scale, this initial site aims for the megaton range, representing a significant step forward.

Climeworks’ Technology and Scalability

Climeworks utilizes renewable energy and waste heat to power modular collectors, allowing for scalable machine construction. The company’s carbon capture capacity is primarily limited by the availability of power.

Currently, Climeworks collaborates with Carbfix in Iceland, capturing carbon dioxide and storing it in mineralized basalt. The Northern Lights project, utilizing deep geological sequestration in a North Sea saline aquifer, is viewed as an ideal alternative storage location.

Investment in Climeworks

To date, Climeworks has secured over $150 million in funding from investors, including Zuercher Kantonalbank.

Northern Lights’ Existing Infrastructure

Northern Lights is already preparing to capture carbon dioxide from industrial sources in the Oslo region. This captured CO₂ will be transported to an onshore terminal and then piped offshore for storage 1.62 miles beneath the North Sea seabed.

“Northern Lights is offering carbon capture and sequestration as a service,” Jacobsen stated. He highlighted the significant interest from European emitters in carbon capture and sequestration solutions, accelerating the demand for viable options.

Jacobsen also mentioned that Northern Lights has numerous Memorandums of Understanding (MOUs), confidentiality agreements, and letters of support from potential customers, indicating strong early interest in the project.