Yinson Production (“YP”) has invested in Carbon Removal AS (“CR”), a Norway-based company that is a front runner in the development of Direct Air Capture (“DAC”) projects.

The investment signals YP’s serious commitment to developing decarbonisation solutions for the offshore production industry and expands YP’s expertise and knowledge in this area, facilitating new business opportunities and YP’s participation in the carbon credit value chain. In the longer term, YP aims to create and build new low-carbon markets.

CR is currently developing a DAC plant located in Øygarden, Norway, which aims to capture and remove approximately 500,000 tonnes of carbon dioxide per year for permanent storage under offshore saline aquifers. The ambition is permanently storing the captured carbon in Northern Lights – Norway’s flagship carbon transport and storage infrastructure network. Northern Lights is located just a short distance from CR’s DAC plant and is designed to be connected via pipeline.

The investment aligns with Yinson’s strategy of transitioning to a greener future through decarbonisation and achievement of its Climate Goals while supporting a sustainable and inclusive transition for the energy industry.

DAC technology directly captures carbon dioxide from the atmosphere, allowing greenhouse gases to be permanently stored underground or used in industrial applications. DAC is a key technology being considered by hard-to-abate industries for the offset of residual emissions.

YP Chief Technology Officer Lars Gunnar Vogt commented, “This collaboration leverages YP’s experience in project development and execution, operations & maintenance, and project financing; as well as CR’s leading-edge capabilities in the development of DAC technology projects. Our combined synergies will contribute significantly to the realisation of YP’s Zero Emissions FPSO Concept, which aims to provide solutions that will support the offshore oil & gas industry’s transition to low-carbon operations. The partnership and investment in CR allow us to participate in DAC projects at a relevant scale, which are also deployable in the near term.”

CR Chairman Eirik Lilledahl said, “The investment of YP in CR is a major milestone for our company and the DAC project in Øygarden. It shows support for the attractiveness of DAC to compensate for the hardest to abate emissions. YP also brings financial strength and industrial competence to the project, along with experience from planning, executing and operating projects of similar size and complexity to the DAC project in Øygarden. We expect their participation will be a great example of the oil and gas sector reapplying their capacities to the sustainability transition.”

Since announcing its Zero Emissions FPSO Concept in May 2021, YP has been actively exploring and incorporating zero emission technologies into its fleet’s operations and designs, including the implementation of hydrocarbon blanketing and combined cycle technologies into the existing and future fleet. In October 2023, YP announced the world’s first post-combustion offshore Carbon Capture and Storage (“CCS”) plant on FPSO Agogo, which is currently being constructed. The plant is designed at a pilot scale and will be used as a demonstration unit in an offshore floating environment to assess technical readiness and gain operational know-how.