TotalEnergies SE TTE, along with its partners Equinor ASA EQNR and Shell plc SHEL, has announced the Final Investment Decision (FID) for the second phase of the Northern Lights development. This will increase the project's transport and storage capacity from 1.5 million to more than 5 million tons of carbon dioxide (CO2) per year, starting 2028.

The initial phase of the project has been completed and is ready to accept CO2 from industrial sources. Operations are expected to begin this summer, including the first shipment of CO2 from Heidelberg Materials' cement factory in Brevik, Norway, to a reservoir 2,600 meters below the seabed off the coast of Øygarden, western Norway, for injection and long-term storage.

An Insight Into TTE’s Project

Leveraging the existing onshore and offshore infrastructures, the second phase represents an investment of $700 million (NOK 7.5 billion). The new onshore storage tanks, pumps, jetty, injection wells, and transport vessels that are part of this development should be completed by the second half of 2028 and be ready for use.

This FID for the subsequent phase follows the signing of a 15-year commercial contract between Northern Lights and Stockholm Exergi, the Swedish district energy supplier, for the cross-border transportation and storage of 900,000 tons of biogenic CO2 emissions annually, commencing in 2028.

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.

TTE is leveraging its expertise in project management, gas processing and geoscience skills to move toward significant decarbonization of complex industrial sectors through projects like Northern Lights in Norway, Norther Endurance Partnership in the UK, Bayou-Bend in the United States, Aramis in the Netherlands and Bifrost in Denmark.

In 2024, TotalEnergies acquired Talos Low Carbon Solutions, a carbon capture and storage (CCS) business, for $148 million, gaining assets such as the Bayou Bend project and stakes in the Harvest Bend and Coastal Bend CCS projects. TotalEnergies aims to reduce emissions through a systematic approach, including the development and deployment of carbon storage projects.

Growth Prospects

Rising carbon emissions globally and growing concerns about the detrimental impact of these emissions on the environment have driven the worldwide adoption of carbon capture and storage technology, leading to market expansion. According to a Global Market Insights report, the global carbon capture and storage market was valued at $8.8 billion in 2024 and is estimated to witness a CAGR of 16.7% from 2025 to 2034.

Other companies are also set to take advantage of the expanding CSS market.

Shell is currently developing CCS projects in the North Sea, the Americas and Asia. In Alberta, Shell Canada operates Quest, a CCS facility that captures, transports and stores more than a million tons of CO2 every year from the Scotford Upgrader. Since its inception in 2015, Quest has captured and safely stored more than 9 million tons of CO2.

SHEL’s long-term (three to five years) earnings growth rate is 6.18%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 3.5%.

Since 1996, Equinor has captured CO2 from the natural gas on the Equinor-operated Sleipner field in the Norwegian sector of the North Sea. More than 19 million tons of CO2 have been injected and stored in a saline formation 1 km below the seabed.

EQNR’s long-term earnings growth rate is 11.62%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 13.3%.

Eni SpA E and Snam are collaborating on Italy's first Carbon Capture and Storage (CCS) project, called Ravenna CCS, which aims to capture, transport, and store CO2 emissions from Eni's natural gas treatment plant in Ravenna, with the potential to become a major CCS hub for Southern Europe.

The Zacks Consensus Estimate for Eni's 2025 EPS indicates a year-over-year increase of 4%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year decrease of 13.1%.

TTE’s Stock Price Performance

In the past three months, shares of TotalEnergies have risen 19.6% compared with the industry’s 13.4% growth.    

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TTE’s Zacks Rank

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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