Statoil is to conduct a feasibility study on carbon capture and storage (CCS) on the Norwegian Continental Shelf (NCS).

Norway’s Ministry of Petroleum and Energy signed an agreement with the company today.

The NOK $4 million (£2.7m) study, aimed at developing full-scale CCS, will include various concepts for storing CO2 at three different locations on the NCS.

It is expected to be completed by June this year.

Petroleum and Energy Minister Tord Lien said: “Carbon capture and storage will be an important measure in order to mitigate climate change and meet the emission targets under the Paris Agreement. We are pleased that we have reached an agreement with Statoil on conducting a feasibility study regarding CO2 storage.”

The UK Government scrapped the £1 billion CCS competition in November last year.