The Northern Lights terminal in Bergen, Norway, a joint venture between Equinor ASA, Shell Plc, and TotalEnergies SE, will serve as the gateway to a massive undersea carbon storage site. Captured carbon dioxide will be offloaded at the terminal and pumped 1.6 miles below the seabed into an aquifer about 60 miles offshore.
The Role of Carbon Capture and Storage (CCS) in Achieving Net-Zero Emissions

Achieving net-zero emissions primarily involves reducing carbon-emitting activities. However, capturing and storing those emissions can supplement these efforts. CCS could cost up to $10 trillion through 2050, offering a climate hedge for fossil fuel producers. Bloomberg NEF projects that CCS will account for 16% of the emissions reductions needed to reach net zero by 2050.
The Costs and Challenges of Implementing CCS
CCS involves chemically “scrubbing” carbon dioxide from power plant smokestacks or industrial processes, then compressing, transporting, and storing it. The costs associated with CCS are substantial, often exceeding current carbon prices.
Government Support and Regulation Are Crucial for CCS Development

The Northern Lights project exemplifies the critical role of government in enabling CCS. Norway funds 80% of the initial investment and some of the operating costs. CCS relies on revenue generated by regulation, including subsidies and penalties for emitters.
Scaling Up CCS: Infrastructure Requirements and Competition with Alternatives
Scaling up CCS will require a significant expansion of infrastructure:
- Pipeline networks: The IEA estimates that CCS will need between 60,000 and 360,000 miles of dedicated pipelines, up from less than 6,000 today.
- Direct air capture: The volume of air that direct capture must process presents a substantial physical challenge.
CCS faces competition from alternatives with faster learning rates, such as solar and wind power. The cost declines of renewables pose a risk to CCS projections.

The Economic Case for CCS in Industrial Processes
There is a stronger economic case for CCS in industrial processes like cement, metals, and chemicals manufacturing. The high heat requirements and chemical reactions involved in these processes limit the potential for electrification to address emissions.
The Future of CCS and Its Impact on Fossil Fuel Demand
The expansion of CCS will likely remain tied to government support. Widespread adoption of CCS would require societies to internalize the risks of climate change and incentivize expensive forms of emissions abatement. In such a world, robust carbon pricing would reduce the overall demand for fossil fuels.

CCS will play a vital role in addressing stubborn emissions, but its success will depend on sustained government support and its ability to compete with rapidly advancing clean energy alternatives.