Strong commitment to CCS

The Norwegian Government today presents its strategy for Carbon Capture and Storage (CCS). It contains a broad range of activities within research and development, full-scale demonstration in Norway and international CCS deployment. The Government has an ambition to realize at least one full-scale CCS pilot project by 2020. We are looking at opportunities both in Norway and abroad.

“A comprehensive commitment to CCS is necessary to reduce greenhouse gas emissions. The Government’s ambition is to realize at least one full-scale demonstration facility by 2020. This is a challenging task. We are working along two paths: Accommodating realization of a full-scale CCS facility in Norway and responding positively to participate in a joint effort to support such a facility in Europe,” says Minister of Petroleum and Energy Tord Lien.

A broad CCS deployment is vital because of climate change and increased global energy demand. In Norway we have committed substantial resources to this effort for a long time. It is important that the first full-scale projects are good reference projects that can develop and spread the technology and contribute to cost reductions. The Government will consider how we can accommodate the construction of such facilities through suitable incentives for companies.

Norwegian power production is primarily based on renewable resources. Therefore, Norway has few land-based facilities suitable for CCS. Emissions from industrial production are the most relevant. We will continue Gassnova’s study of potential full-scale projects in Norway. In dialogue with relevant companies Gassnova will explore whether there is a basis for initiating an industrial project process with the realization of full-scale CO₂ capture as the objective. At the same time Gassnova will also co-ordinate an initial study of transport and storage solutions from the relevant emission sources. The first phase is expected to last until mid-2015. Thereafter a more detailed analysis will have to be undertaken, through feasibility studies.

In addition to promoting full-scale CCS demonstration in Norway, we have replied positively to an invitation from the European Commission to participate in a joint effort to help realize a full-scale CCS project in Europe. Therefore we have proposed to commit funding of up to NOK 125 million to participate in such a co-operation. We will also consider how the EEA and Norway grants can fund CCS projects in Europe.  

Research and development is also a fundamental element in the strategy. Today’s research lays the foundation for the low-carbon economy of the future. The CO₂ Technology Centre Mongstad (TCM) delivers important contributions to the development of capture technologies. The Government therefore proposes to grant NOK 227,5 million for the operation of the technology centre, and NOK 65 million for modifications, maintenance and further development of the facility. This will enable testing of several technologies at the centre. The Government continues the research and demonstration programme CLIMIT with a proposed allocation of NOK 200 million.

Norway also makes a considerable effort to promote CCS internationally, both through the climate negotiations and by promoting international capacity building and the deployment of CCS in developing countries and emerging economies. The Government proposes to support the the Green Climate Fund with at least NOK 200 million in 2015. The Green Climate Fund will finance climate change mitigation and climate adaption initiatives.

Carbon Capture and Storage in numbers:

• NOK 227,5 million for the operation of the CO₂ Technology Centre at Mongstad (TCM)
• NOK 65 million for modifications, maintenance and further development of TCM
• NOK 200 million for the research and demonstration programme CLIMIT
• NOK 200 million for the Green Climate Fund
• NOK 125 million for full-scale demonstration in Europe
• NOK 96 million for the operation of Gassnova SF
• NOK 6 million for other CCS activities