The two companies signed the document in the southwestern Norwegian city of Stavanger on Tuesday, public broadcaster Polish Radio’s IAR news agency reported.
Under the letter of intent, Orlen subsidiary PGNiG Upstream Norway would acquire up to 50 percent of the licence for the Polaris CO2 storage field in the Barents Sea, owned by Horisont Energi AS, and become its operator, according to executives.
Orlen CEO Daniel Obajtek said a final agreement for the project, to be worth up to USD 1 billion, would be signed in October.
The Polish state-run energy giant expects to be able to start offering the Carbon capture and storage (CCS) service in the Polaris field in the Barents Sea by early 2029, officials said.
For logistical reasons, the service will be offered mostly to Norway-based companies, Polish state news agency PAP reported.
Obajtek said Orlen would “apply the experience we aim to gain off the coast of Norway in Poland.”
The Orlen chief executive added that CCS would reduce production costs in various industries and have a positive impact on the environment.
Obajtek stated: “Efficient and safe carbon dioxide storage is key to maintaining the competitiveness of industries facing high emissions costs. To continue their operations in Poland or the broader European Union, the steel, fertilizer and cement industries must devise effective strategies for managing carbon emissions.“
He also said: “As part of the Orlen Group’s strategy, we aim to develop strong capabilities in comprehensive industrial emissions management within a few years.”
Poland’s Orlen is an integrated multi-utility company. It owns seven oil refineries (four in Poland, two in the Czech Republic and one in Lithuania), 3,100 petrol stations (in Poland, Germany, the Czech Republic, Slovakia, Lithuania and Hungary), a notable petrochemicals division and a renewable energy arm, including projects to build wind farms and solar farms.
Orlen also plans to launch at least one small modular nuclear reactor (SMR) by 2030, the PAP news agency reported.
The company expects to invest up to PLN 320 billion (around EUR 71.5 billion) in new projects over this time frame, according to officials.
(pm/gs)
Source: IAR, PAP, Orlen