The transaction follows a letter of intent signed by the companies in September this year. The agreement is subject to approval of Norwegian authorities.

"We are embarking on another project aimed at fortifying Orlen’s standing as a regional leader in the energy transition. CO₂ capture and storage will play a pivotal role in delivering the group’s climate policy, also enabling us to introduce a new carbon management service. With soaring CO₂ allowance prices, carbon storage becomes crucial for sustaining the competitiveness of certain industries in Poland and other EU countries. The growing interest in carbon storage services underscores the significance of today’s transaction, granting the Orlen group an interest in the Polaris license in the Barents Sea, designated for carbon dioxide injection. The project will enhance our capabilities and know-how in offshore CO₂ storage, a valuable asset that can also be leveraged in Poland," said Daniel Obajtek, Orlen CEO and president of the management board.

The estimated storage capacity of the geological structures within the Polaris license that is attributable to PUN’s interest totals about 100 million tons of carbon dioxide, which should sustain storage operations up to 25 years. If the estimated storage capacity is confirmed, carbon dioxide injection could begin in late 2028 or early 2029. Part of the stored CO₂ will come from an ammonia plant that Horisont Energi is planning to build as part of a separate project named "Barents Blue". The remaining capacity is to be made available to third parties.

"The Polaris project has the potential to contribute to emission reductions at an industrial scale and is representative of the rapid development of the CCS industry in Norway and Europe. Polaris will also play an integral role in the ‘Barents Blue’ clean ammonia project," said Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.

Carbon capture and storage or utilization is one of the solutions Orlen is using to achieve its target of a 25% reduction in emissions from its refining, petrochemical and upstream activities by the end of 2030.