Norwegian energy giant Equinor has been under fire after an investigation found a huge gap between its public claims of CO2 storage and the actual figures. The company had claimed that its Sleipner facility captured about one million metric tons of CO2 annually. However, official figures from the Norwegian Environment Agency (NEA) show that the actual amount stored at the site in 2023 was only 106,000 tons.

According to reports from DeSmog, the claim by Equinor about capturing one million tons of CO2 per annum was higher than the actual figures. DeSmog investigation in 2023 showed that Sleipner stored only 106,000 tons of CO2. The incorrect information on Equinor’s website led it to remove them. Equinor attributed this error to the outdated webpage that had caused this error.

Also read: Equinor Secures Over $3 Billion in Financing for Empire Wind 1 Project

Sleipner’s Role in Carbon Capture and Storage

Sleipner, located in the North Sea, has been operational since 1996. The facility separates CO2 from natural gas during purification and injects it beneath the seabed for permanent storage. Despite the challenges, such as cost overruns and missed targets, the project has been frequently cited as an example of the potential of carbon capture and storage (CCS) to fight climate change.

Challenges Faced by Sleipner and Equinor

While the Sleipner project has demonstrated CCS technology, it has also faced challenges throughout its history. These include cost overruns and not meeting the initial storage targets. Despite these challenges, Equinor is positioning itself as a leader in Europe’s growing CCS sector, which is seen as essential for meeting climate goals.

Equinor’s Strategic Positioning in CCS

Equinor aims to become a major player in the European Union’s ambitious plan to expand CCS capacity. Although Norway is not part of the EU, the country hosts most of Europe’s operational CCS capacity. This capacity is primarily due to two key projects: Sleipner and Snøhvit. Located in the North Sea and Barents Sea, these projects have been at the forefront of CCS development in Europe.

Data on CO2 Storage at Sleipner and Snøhvit

In 2023, Sleipner and Snøhvit had a collective storage capacity for 1.7 million tons of CO2. However , the two facilities were made for only 763,000 tons of CO2, less than half the possible capacity. This adds on to the wide gap between declared and achieved stored quantities.

Equinor claimed to capture one million tons of CO2 per year at Sleipner. This was not correct, and the company corrected the figure, removing the misleading information from its website. Despite such issues, Sleipner and Snøhvit projects form the core of Equinor’s efforts to increase CCS capacity in Europe. As the energy sector moves toward cleaner solutions, transparency in CO2 storage figures will be crucial for the effectiveness of CCS technologies.

The Climate Investment Funds’ (CIF) Capital Markets Mechanism (CCMM) has made its market debut, receiving high ratings from Fitch and Moody’s (AA+/Aa1). The mechanism successfully raised $500 million, with a robust orderbook exceeding $3 billion from global investors.

CCMM’s first issuance, a 3-year bond, raised $500 million following its announcement at COP29 in November 2024. The bond attracted significant investor interest, with a final pricing set at +36.6 basis points over the 3-year US Treasury. The bond offered a semi-annual yield of 4.838%, and the listing will be on the International Securities Market of the London Stock Exchange.

Accelerating Climate Finance Through Innovative Issuance

The CCMM aims to accelerate climate funding by frontloading future reflows from CIF’s Clean Technology Fund (CTF) funded operations. Managed by the World Bank, CCMM serves as Treasury Manager, Trustee, and host of the CIF Secretariat. This approach aims to close the financing gap for low-carbon technologies like renewable energy, sustainable transport, and also industry decarbonization in developing countries.

Strong Investor Support and High Demand

Tariye Gbadegesin, CEO of Climate Investment Funds said, “Today is a historic moment for climate finance. The inaugural CCMM bond issue has exceeded all expectations, with our order book over six times over-subscribed. This is an enormous vote of confidence and a sign of the keen market interest in backing high-quality clean energy projects.”

She added, “These bonds will multiply the funds available for scaling-up clean technology and infrastructure in developing countries – not in ten years, but now, when it’s most critically needed.”

Also read: Climate Investment Funds Approves $500 Million Plan to Restore Ethiopia’s Degraded Land

Empowering Clean Technology and Infrastructure

Moreover, CCMM’s bond issuance directly funds high-impact programs in developing countries, ensuring timely support for clean energy and infrastructure projects. CCMM maximizes its impact by exclusively channeling CIF funding through six AAA-rated multilateral development banks (MDBs), ensuring strong support for climate action and also sustainable development.