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Statoil to Assess Carbon Capture and Storage Projects at NCS

Statoil ASA STO has been assigned the task of assessing the development of carbon storage on the Norwegian continental shelf (NCS) by Gassnova. It will be the first storage site in the world receiving CO2 from numerous industrial sources.

The Norwegian authorities aim to develop full-scale carbon capture and storage in Norway and this storage project is in line with it. It will capture CO2 from three onshore industrial facilities in Eastern Norway and carry CO2 by ship from the capture area to a receiving plant onshore, located on the west coast of Norway.

Before being sent via pipelines on the seabed to numerous injection wells east of the Troll field on the NCS, CO2 will be pumped over from the ship to tanks onshore at the receiving plant. There are several potential locations for the receiving plant but the final option would be based on factors such as safety, costs and expansion flexibility.

Earlier, Gassnova was allotted the assignments for carbon capture and transportation in the project.  The storage solution to be appraised by Statoil will have the potential to obtain CO2 from both Norwegian and European emission sources.

The results of studies carried out in 2016 demonstrate that it is technically viable to realize a carbon capture and storage chain in Norway. The next phase of the project, which has been allocated to Statoil, will entail concept and pre-engineering studies in order to assess the possibilities in more detail.  It will also involve getting accurate cost estimates for a possible investment decision. In 2019, an investment decision for project implementation is anticipated to be made by the Norwegian Parliament.

The technologies for carbon capture and storage in geological formations are recognized and established. Worldwide there are 21 full-scale carbon capture and storage projects in the development or operations phase. Statoil’s carbon capture and storage (CCS) projects at Sleipner and Snøhvit are among these. They have given Statoil over two decades of operational carbon storage experience.

The Norwegian CCS project will be a cooperation project between onshore industry, government authorities and companies with offshore expertise, such as Statoil.  

Future carbon storage may also help in the development a hydrogen market. Hydrogen produced from natural gas generates CO2 as a by-product. The presence of a value chain for CO capture, transportation and storage will aid in further scrutinizing a full-scale value chain for hydrogen, which is a low-carbon energy solution with potentials within power, heating and transportation.

Shares of the company have lost 4.5% over the last three months while the Zacks categorized Oil & Gas – International Integrated industry declined 3% in the same time span.

Statoil currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Delek US Holdings, Inc. DK, Gran Tierra Energy Inc GTE and Canadian Natural Resources Limited Ltd. CNQ. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Delek US Holdings delivered a positive earnings surprise of 148.48% in the preceding quarter. The company beat estimates in each of the four trailing quarters with an average positive earnings surprise of 60.68%.

Gran Tierra Energy delivered a positive earnings surprise of 105.88% in the preceding quarter. The company beat estimates in two of the three trailing quarters with an average positive earnings surprise of 18.63%.

Canadian Natural Resources delivered a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the four trailing quarters with an average negative earnings surprise of 275.46%.

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Delek US Holdings, Inc. (DK): Free Stock Analysis Report
 
Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report
 
Gran Tierra Energy Inc. (GTE): Free Stock Analysis Report
 
Statoil ASA (STO): Free Stock Analysis Report
 
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