Norwegian energy company BKK declared plans Thursday to build an offshore power grid in the North Sea, in a more than $2 billion venture to assist the nation’s oil and gas trade cut greenhouse gas emission. It’ll undertake the venture with infrastructure firm CapeOmega, which owns stakes in Norwegian gas pipelines and processing plants.
The challenge will provide electricity from onshore hydropower facilities through a direct current (DC) cable, and BKK stated it would help reduce the Norwegian oil and gas sector’s CO2 emissions by at least 1.4 million tonnes a year, from 14 million tonnes a year presently.
Relying on the transmission capability, it might cut emissions by up to 5 million tonnes a year, or by around a third from present levels, BKK stated.
BKK and CapeOmega’s joint venture Serene Onshore will notify Norway’s power regulator about its plans this week. Nevertheless, BKK delegates mentioned it could take over a year to make a proper application, with construction potentially beginning in 2023.
The corporate was considering a number of options for a potential offshore energy supply hub, including at Equinor’s Oseberg and Wintershall Dea’s Brage fields.
Nearly 80% of emissions by Norway’s oil and gas industry come from using gas-powered turbines on offshore platforms.
The venture may potentially cost as much as 26 billion crowns ($2.84 billion), with the first stage estimated to cost nearly11 billion crowns.
BKK said it would share onshore investments with CapeOmega, while the latter could be in charge of finances offshore.
CapeOmega holds a 16.3% part in Gassled, which owns Norwegian offshore fuel transport infrastructure.