Northern Lights Project Concept report RE-PM673-00001 Page 1 of 139 Classification: Open Status: Final www.equinor.com Northern Lights Project Concept report Doc. No. RE-PM673-00001 Valid from: Rev. no. 2019-05-21 Public Table of Contents 1 Introduction ............................................................................................................................................. 4 1.1 Project owners ........................................................................................................................................... 4 2 Project Summary ..................................................................................................................................... 5 2.1 Project description ..................................................................................................................................... 5 2.2 Development from Contract Award ............................................................................................................ 6 2.3 Project main milestones ............................................................................................................................. 7 2.4 Market assessment.................................................................................................................................... 7 2.5 Pre-investments ........................................................................................................................................ 7 2.6 Risk summary............................................................................................................................................ 8 2.7 Future business potential ........................................................................................................................... 9 3 Project description ................................................................................................................................ 11 3.1 Health, Safety and Environment (HSE) .................................................................................................... 11 3.2 Design data ............................................................................................................................................. 29 3.3 Material Philosophy ................................................................................................................................. 31 3.4 Flow assurance ....................................................................................................................................... 32 3.5 Metering philosophy................................................................................................................................. 35 3.6 Subsurface .............................................................................................................................................. 36 3.7 Drilling & Well .......................................................................................................................................... 40 3.8 Facilities .................................................................................................................................................. 42 4 Operation and Maintenance ................................................................................................................ 111 4.1 Operating philosophy ............................................................................................................................. 111 4.2 Maintenance philosophy ........................................................................................................................ 113 4.3 Cessation .............................................................................................................................................. 113 5 Regularity assessment ........................................................................................................................ 113 6 Technology assessment ..................................................................................................................... 114 6.1 Technology assesment .......................................................................................................................... 114 6.2 Confidential information and patents ...................................................................................................... 118 7 Execution strategy............................................................................................................................... 118 7.1 Project execution ................................................................................................................................... 118 7.2 Procurement .......................................................................................................................................... 119 8 Value Improvement Process ............................................................................................................... 120 9 Schedule .............................................................................................................................................. 121 9.1 Schedule Basis and Changes ................................................................................................................ 121 9.2 Milestones in the project schedule ......................................................................................................... 124 9.3 Project Master Schedule (PMS) ............................................................................................................. 125 9.4 Schedule Risk Analysis.......................................................................................................................... 126 9.5 Critical path and float ............................................................................................................................. 127 9.6 Project Work Plan .................................................................................................................................. 128 Page 2 of 139 Classification: Open Status: Final www.equinor.com Northern Lights Project Concept report Doc. No. RE-PM673-00001 Valid from: Rev. no. 2019-05-21 Public 10 Risk Management ................................................................................................................................ 129 11 Experience transfer ............................................................................................................................. 130 11.1 Plans for “Gevinstrealisering” ................................................................................................................. 130 11.2 Lessons learned .................................................................................................................................... 131 12 Future business potential ................................................................................................................... 134 rd 12.1 3 party access to Northern Lights ......................................................................................................... 134 12.2 Enabling CO2 transport and storage business beyond Northern Lights ................................................... 135 12.3 Enabling low carbon energy carriers and other low carbon value chains ................................................. 136 13 Abbreviations ...................................................................................................................................... 138 Page 3 of 139 Classification: Open Status: Final www.equinor.com Northern Lights Project Concept report Doc. No. RE-PM673-00001 Valid from: Rev. no. 2019-05-21 Public 1 Introduction The Concept Study report (“DG2 report”) was the primary deliverable at Milestone M5/M6A of the Study Agreement. The report was written in November 2018. Due to the change from Smeaheia to Aurora as storage complex, subsurface studies were further matured up to milestone M6B in March 2019. This revision includes a summary of the subsurface studies up to milestone M6B but does not reflect other changes to concept development or schedule since November 2018. 1.1 Project owners The pre-project (concept and FEED studies) is governed by a study agreement between Gassnova and Equinor. A collaboration agreement between Equinor, Shell and Total governs the study work and the preparations for establishing a JVA at the time of a positive investment decision by the partners. Page 4 of 139 Classification: Open Status: Final www.equinor.com Northern Lights Project Concept report Doc. No. RE-PM673-00001 Valid from: Rev. no. 2019-05-21 Public 2 Project Summary 2.1 Project description The Northern Lights project is part of the Norwegian CCS demonstration project with capture of CO2 from industrial sources in the Oslofjord region, shipping of liquid CO2 from capture sites to an onshore terminal on the Norwegian west coast, and pipeline transport from onshore to an offshore storage complex in the North Sea. A full chain schematic is shown in Figure 2-1. The Northern Lights project includes ship transport, onshore storage, pipeline transport to an offshore injection well, and injection of CO2 for storage in a subsurface storage complex. Figure 2-1 Northern Lights project as part of the Norwegian CCS demonstration project The Northern Lights concept is based on Gassnova’s design basis for the demonstration project, with flexibility to include additional volumes from 3rd party customers with incremental