Letter of Intent Signed on Coda Terminal
Carbfix, the municipality of Hafnarfjordur and Rio Tinto Iceland have signed a Letter of Intent in support of Coda Terminal, a CO2 transport and mineral storage hub to be built at Straumsvík, Iceland. The terminal will significantly scale up the Carbfix technology of safe and permanent subsurface CO2 mineral storage that has already been successfully operated for ten years on a smaller scale in Iceland.
Coda Terminal is scheduled to commence operations in 2026 and to reach full annual capacity of mineralizing 3 million tons of CO2 in 2031. This amounts to more than half of Iceland‘s annual emissions. As this significantly exceeds the availability of domestically sourced CO2, the majority will be transported to Iceland following capture from hard-to-abate industries in mainland Europe. Due to the shipping involved, the project requires enlargement of the current harbor at the site, which is owned by the municipality.
The project, which was recently awarded a grant of approx. EUR 100 million by the European Innovation Fund, serves Iceland’s goals of reaching carbon neutrality by 2040 as well as Iceland’s international climate commitments, including those managed within the framework of the European Emissions Trading Scheme (ETS).
Scaling of carbon capture and storage (CCS) is a necessary component of achieving the world’s climate goals according to the IPCC’s latest WGIII report, which states that: “Currently, global rates of CCS deployment are far below those in modelled pathways limiting global warming to 1.5˚C or 2˚C.”
The Carbfix technology involves dissolving CO2 in water and injecting it into porous basaltic rock formations, where natural processes cause the CO2 to form stable carbonate minerals within two years.
The first phase of Coda Terminal will be constructed on land owned by Rio Tinto Iceland. Rio Tinto is exploring ways to capture CO2 emissions from its aluminum plant at the site, to be mineralized by Carbfix.
The site was chosen due to favorable conditions that include harbor facilities, an abundance of appropriate rock formations and water, and the proximity to a local emitter of CO2.
Test drilling at the site has commenced and a scoping document in advance of a full Environmental Impact Assessment report has been submitted to authorities.
Photo: ISAL at Straumsvík, Iceland.
Scaling of carbon capture and storage (CCS) is a necessary component of achieving the world’s climate goals, according to the IPCC’s latest WGIII report, which states that: “Currently, global rates of CCS deployment are far below those in modelled pathways limiting global warming to 1.5˚C or 2˚C.”
Rósa Guðbjartsdóttir, Mayor of Hafnarfjordur: “We are following the project's development with interest, and we’re very pleased that the town of Hafnarfjordur was chosen to host it. As it is planned, the project will bring not only important environmental benefits but also new and varied jobs in Hafnarfjordur and opportunities for further innovation and development of know-how and technology in a town that already is host to numerous tech industries. We see great opportunities while at the same time emphasizing transparency and consultation with the community, companies and other local stakeholders throughout the project’s development.”
Edda Aradóttir, CEO of Carbfix: “The latest IPCC scenarios show that significant scaling of carbon capture and storage is needed to reach the world’s climate goals. We have developed an economical, permanent, and environmentally friendly technology and applied it successfully for ten years. Coda Terminal is our largest project to date and will be an important milestone, not only for those directly involved in the project but also for climate action in Iceland in a broader context, in addition to local economic benefits resulting from this significant investment. Greenhouse gases don’t stop at national borders and international cooperation is crucial for achieving the world’s climate goals. In parallel to developing Coda Terminal we will continue to work towards implementing the Carbfix technology in other countries, addressing the great demand for economic, permanent and safe climate solutions such as ours.”
Grettir Haraldsson, Chairman of Coda Terminal: “The signing of this Letter of Intent is an important step towards Iceland making a significant contribution towards the fight against climate change, for the benefit of the world’s common climate targets.”
Rannveig Rist, CEO of Rio Tinto Iceland: “We have already achieved significant reductions in ISAL’s emissions, resulting in one of the smallest carbon footprints in the entire aluminum industry. If Iceland’s ambitious target of carbon neutrality by 2040 is to be achieved, we must take further decisive steps. Applying carbon capture and storage using the Carbfix technology at Coda Terminal is such a step and that is why Rio Tinto signed an MOU with Carbfix last year. Testing of CO2 capture at ISAL has already started and our aim is to become the first aluminum plant in the world that captures and permanently stores part of its CO2 emissions.”
Further information on the Coda Terminal project: www.carbfix.com/codaterminal
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