Tim Heijn, managing director of Northern Lights CCS, expressed cautious optimism about the carbon capture and storage sector during a panel discussion at Upstream's Global Development and Decarbonisation Week 2026. Northern Lights, a Norwegian government-backed joint venture between Equinor, TotalEnergies, and Shell, is a flagship CCS project that has achieved proof of concept and demonstrated strong technical reliability by establishing a full value chain for transporting and storing carbon dioxide offshore on the Norwegian Continental Shelf.

Operational Success and Phase 2 Expansion

Heijn confirmed that the project now operates a complete chain encompassing capture, transport, and storage, with initial results showing excellent infrastructure and reservoir performance. All equipment and reservoirs are functioning as expected. Following a final investment decision on Phase 2 early last year, Northern Lights is increasing its storage capacity from 1.5 million tonnes per annum to approximately 5 million tonnes per annum. The company has secured several industrial clients and is exploring diverse transport options, including shipping and smaller-scale trucking solutions, to broaden access to its network.

Scaling Through Industrial Hubs

Heijn emphasized that scaling CCS deployment depends on developing industrial hubs that aggregate volumes and improve economic viability. By clustering emitters and expanding transport options, operators can achieve efficiencies unattainable in standalone projects. He noted that the next major step is scale, as creating a nucleus of projects enables the formation of surrounding hubs. For early movers like Northern Lights, the primary challenge is scaling up to demonstrate that CCS can evolve into a commercially sustainable market.

Economic and Policy Context

Heijn acknowledged that the business case for CCS in Europe remains complex and layered, relying on a combination of carbon pricing, subsidies, and emerging markets for low-carbon products. Looking ahead, he stressed that cost reductions, along with improved risk allocation and coordination across stakeholders, will be critical to accelerating deployment. He concluded by reiterating his cautious optimism, describing CCS as an essential tool for decarbonization.