Unprecedented allocation of funds toward carbon capture and storage

The Norwegian Government has a goal of establishing carbon capture and storage (CCS) as an effective instrument against climate change. In the National Budget of 2010, the Norwegian Government proposes to allocate approximately NOK 3.4 billion toward`s CCS. This will be distributed to the projects at Mongstad and Kårstø, the transport and storage project, international work, as well as research and development of CCS technologies.

- Climate change is the greatest challenge of our time. We must therefore act now. We must increase our efforts in renewable energy, we must increase efficiency in energy usage, and we must succeed with carbon capture and storage. The Norwegian Government’s proposed allocation towards CCS in the 2010 National Budget is the largest ever. This is to ensure success in the development of CCS technology that can be used worldwide, and which may be crucial in the fight against climate change, says Minister of Petroleum and Energy, Mr. Terje Riis-Johansen.

The CCS project at Mongstad is one of the most important instruments in Norway’s climate policy. The European CO2 Technology Centre Mongstad, among the world’s first and largest facilities of its type, is under construction. The Norwegian Government proposes an allocation of approximately NOK 1.8 billion to cover the State’s share of investment in the technology centre. Furthermore, NOK 760 million is proposed towards planning and preparation of full scale carbon capture at Mongstad.

The Norwegian Government has assigned Gassnova and Gassco the task of preparing a mapping study of a possible integration between the gas-fired power plant and the gas terminal at Kårstø. The work will continue until February 2010, and will be the basis for prospective further studies of a possible integration solution at Kårstø. A budget of NOK 40 million has been proposed in 2010 towards integration studies.

The planned progress of the work related to transportation and storage of CO2 from Mongstad and Kårstø is coordinated with the work related to the capture facilities. The Norwegian Government proposes an allocation of NOK 500 million in 2010 towards planning and preparation of solutions for transportation and storage for CO2. The allocation will also cover work which will contribute to increased knowledge on the Norwegian continental shelf’s potential for future storage of CO2.

The Norwegian Government proposes an administrative allocation for the State enterprise Gassnova of NOK 91 million in 2010. Gassnova manages the State’s interests in the CCS projects and administers the CLIMIT programme. Furthermore, approximately NOK 180 million is proposed allocated to CLIMIT in 2010, an increase of NOK 30 million compared to 2009.

The Norwegian Government has created an action plan regarding the international work to promote CCS as an instrument against climate change. In 2010, NOK 20 million is proposed allocated over the Ministry of Petroleum and Energy’s budget towards work based on the action plan.