Petrofac has signed an agreement with carbon capture technology company, CO2 Capsol, which enables collaboration on carbon capture projects.
Under the terms of the non-exclusive agreement, Petrofac will work as a preferred engineering services partner to support CO2 Capsol’s carbon capture opportunities across the UK, Europe and over time, globally. Both parties will bring together their combined expertise and capabilities, with Petrofac providing established engineering and project delivery expertise, and CO2 Capsol providing carbon capture technology.
John Pearson, Petrofac Chief Operating Officer, commented: “Industry collaborations that support the acceleration of critical net zero infrastructure will be fundamental to the Energy Transition. Alongside Petrofac’s global engineering and operations experience, we see great potential for efficient technologies such as those developed by CO2 Capsol, to bring down cost across the value chain as we seek to de-risk and fast-track carbon capture projects for industrial emitters.”
Jan Kielland, CEO of CO2 Capsol, commented: “We have found a great services partner in Petrofac. Their standing in the international energy industry is at the highest level. This is illustrated by the award of the Front-end Engineering Design (FEED) contract for the Stockholm Exergi Bio-CCS project and the award of the Project Management Services contract for the Acorn CCS project in Scotland.”
Petrofac and CO2 Capsol are currently working together on a planned CO2 capture facility at one of Stockholm Exergi’s combined heat and power plants in Sweden. Stockholm Exergi awarded a Front-End Engineering Design (FEED) contract to Petrofac and selected CO2 Capsol’s End of Pipe (EoP) solution as its capture technology. Design work has begun on what will be the largest Bio Energy Carbon Capture and Storage (Bio-CCS) plant in Europe, and Petrofac will integrate CO2 Capsol’s capture technology, which is based on the Hot Potassium Carbonate (HPC) process, to deliver the FEED study.
“Petrofac has demonstrated a strong competitive edge by being awarded the FEED study for Stockholm Exergi and we are proud that our technology has been selected for this project. We will provide support to Petrofac for a successful execution of the project”, says Jan Kielland.
The bioenergy plant in the Värtan area of Stockholm has a potential of capturing 800,000 tons of carbon dioxide per year, which equals the (current) annual CO2 emissions from all traffic in Stockholm.
Stockholm Exergi’s target is to complete the construction and begin operations during the second half of 2025.
The market for carbon capture projects is growing rapidly. Political commitments, international cooperation, legislation, and taxation combined with available financing has opened up for projects in all parts of the world.
“The whole value chain from capturing to permanent storage or industrial use of the CO2 has increased dramatically. European markets are developing at high speed and projects are receiving strong political and financial support”, says Jan Kielland.
Petrofac is expanding its offering in New Energies. The Company is focused on building a $1bn business in the medium-term through the provision of engineering, EPC and O&M services across the CCUS, offshore wind, hydrogen and waste-to-value sectors, as well as its commitment to reducing its Scope 1 and 2 emissions to Net Zero by 2030.