UK and Norway launch cross-border carbon capture project

Countries commit to green energy partnership and to 'identify gaps and challenges' in developing North Sea as carbon storage hub

British Prime Minister Keir Starmer and Norwegian Prime Minister Jonas Gahr Stor meet in Norwegian capital Bergen. AP

UK Prime Minister Keir Starmer hailed Britain and Norway's “strong history, shared thinking and values” as the two countries unveiled a new green energy partnership in renewable energy and carbon capture on Monday.

Mr Starmer visited a carbon transport and storage centre in Norway to witness first-hand how such projects can regenerate industrial heartlands in the UK, leading to job creation and a boost to the economy. The UK and Norway have a long-standing relationship in the energy sector, with Norway being one of the largest supplies of natural gas to Britain. It is hoped the Green Industrial Partnership will be signed in the spring of 2025.

Speaking in Norway on Monday at a press conference, Mr Starmer said the recent carbon capture announcements in the UK will provide "good, well paid jobs for many years to come".

"Carbon capture has a potential for decades and decades of work, and we're probably two of the best placed countries in the world in relation to this cutting edge technology, this approach," he added.

Norway's Prime Minister Jonas Gahr Store said the technology was considered science fiction a few years ago. "Carbon capture and storage has to be part of a solution to reach our climate ambitions, while dealing with industry, with development and securing jobs," he said.

"So I'm very pleased to be able to show my friend what has happened here and so moving ahead with CCS (carbon capture and storage) and that Norwegian expertise and industrial skills are part of that endeavour."

The countries have also committed to “identify gaps and challenges” to develop the North Sea as a hub for carbon storage and strike a bilateral agreement or arrangement for the cross-border transport of carbon dioxide.

Speaking ahead of the trip, Mr Starmer said the energy partnership with Norway, which has a border with Russia, would help to boost growth and protect against increases in international energy prices, such as that which followed President Vladimir Putin's invasion of Ukraine.

“It will harness the UK's unique potential to become a world leader in carbon capture – from the North Sea to the coastal south – reigniting industrial heartlands and delivering on our plan for change,” he said.

In addition to the launch of the Green Industrial Partnership, the UK and Norway will also expand their work on developing the North Sea as a hub for carbon storage and the development of a bilateral arrangement for transporting carbon dioxide across each other's borders under the London Protocol, an environmental treaty that deals with the sea transport of carbon dioxide and other substances.

The UK is aiming to become a world leader in carbon capture, utilisation and storage (CCUS), and has set aside £21.7 billion of funding over the next 25 years. This will be allocated to carbon capture and storage projects, as well as the development of hydrogen as an alternative energy source.

“We work closely with the UK in a wide range of areas,” Mr Store said. “We have co-operated in the field of carbon capture and storage for more than 20 years, and further strengthening our co-operation with the UK will help us to cut emissions and create green jobs. It is important to show our partners what Norway can bring to the table in our joint efforts to achieve our common goals.”

The launch comes just days after the government signed the first CCUS contracts in the UK. The Northern Endurance Partnership and the Net Zero Teesside projects involve BP and the Norwegian energy company Equinor, and it's predicted the initiatives will create thousands of skilled jobs in the north of England and deliver clean energy to one million UK homes within the next three years.

In addition, collaboration between Norwegian company Vargronn and UK company Flotation Energy continues apace with the announcement of front-end engineering and design contracts at the pairs' joint venture floating offshore wind farm Green Volt. Located off the north-east of Scotland, Green Volt is the first major commercial floating wind development in Europe.

Last week, the Norwegian clean energy company Statkraft broke ground on the Swansea Greener Grid Park in Wales, a £70 million project that will use low carbon technology to improve grid stability and reduce the need to use fossil fuel power plants. Statkraft has already completed two similar projects in the UK and invested £1.4 billion in Britain's broader renewable energy infrastructure.