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SAFETY4SEA

Porthos project seeks to close cooperation agreements

by The Editorial Team
June 14, 2019
in Ports
eia porthos

Credit: Port of Rotterdam

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Following investigation on storage of CO2 in depleted offshore gas fields under the North Sea earlier this year, the Port of Rotterdam-led Porthos project now aims to close cooperation agreements (Joint Development Agreements, JDA) with interested companies.

With these agreements, Porthos and companies agree to jointly work towards the conclusion by mid-2020 of final contracts for the transport and storage of CO2.

Companies which sign a JDA before October 1st 2019 will get a preferential right to capacity in case the demand exceeds the available capacity for the transport and storage system,

…the Port said.

Early 2019 several companies signed an Expression of Interest with Porthos, which was legally not binding. The JDA does contain rights and obligations.

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Meanwhile, companies who sign a JDA before 1st October 2019 will get a preferential right to capacity in the capacity allocation procedure.

This means that if the demand for capacity will be larger than available capacity, companies who have signed a JDA will get access first.

In return, the companies oblige themselves to prepare the design of their capture installations and apply for the necessary permits.

Companies can sign a JDA before October 1st 2019, the option is available to all companies, including those who have not submited an Expression of Interest yet.

The preferential right will only be awarded to the companies who sign a JDA before October 1st 2019.

Porthos then targets conclusion of final contracts between companies and Porthos for transport and storage of CO2 by summer 2020.

On base of these contracts, companies can then apply for government SDE++ subsidies. If such subsidies are not timely awarded, the contract can be annulled.

As soon as the subsidies are awarded, or if companies do not need subsidies, and all other conditions have been complied with, de companies and each of the Porthos parties can take their respective investment decisions.

The Porthos Final Investment Decision (FID) is anticipated for early 2021.

Tags: carbon storageCO2North SeaPort of Rotterdam

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