Ladies and gentlemen,
It is a great pleasure for me to speak today on this important topic. This seminar gives evidence of the mutual commitment and close relationship between the UK and Norway in the field of carbon capture and storage (CCS). Both countries would also like to cooperate closely with other countries around the North Sea.

Carbon capture and storage could play an essential role in the portfolio of mitigation actions for stabilization of atmospheric greenhouse gas concentrations. In addition to being a climate mitigation option, injection of CO ₂ in producing fields could contribute to enhanced recovery. In this way it could also be important in a resource management perspective. The technical potential for using CO ₂ for enhanced oil recovery and for storage purpose only at the Norwegian Continental Shelf is substantial. However, we have to acknowledge that realizing carbon capture and storage in a large scale still is a very challenging task.

The position ofNorway– the Government's ambitious goals
Before I address the issue of CCS further, let me briefly outline the main principles of Norway's policy to address climate change, and the setting for the discussions on CCS in Norway.

From a Norwegian point of view, recent years have distinctly illustrated that a more secure energy supply requires an energy system that has increased capacity and is less dependent on hydropower as an energy source. In this context, an important element in the Norwegian future energy policy is to create conditions for the development of environmentally friendly alternatives to hydropower. Gas fired power plants is an interesting option in this respect. However, to make sure that emissions do not increase, production of electricity from gas fired power plants will have to be fitted within our commitments to the Kyoto Protocol and be part of the international emissions trading system. The Government aims to fulfil the commitments in the Kyoto Protocol through a broad set of policies and measures, by using the Kyoto mechanisms and securing that a substantial part of our commitment is fulfilled nationally.

Let me now turn to carbon capture and storage as an option. I would like to underline that the Norwegian Government has ambitious goals to realize capture, use and storage of carbon dioxide in Norway, with a demanding timetable. The Government aims to cooperate with industry to realize capture of carbon dioxide at gas fired power plants as soon as possible. We want to make sure that the process is started to realize a carbon dioxide capture-facility at the Kårstø gas fired power plant, in the western part of Norway. The authorities will be involved in establishing a value chain for transportation and injection of CO ₂, and contribute financially in these processes.

Our Government came into office in October. Knowing that the timetable is tight, we have already started the process towards achieving our goals. I have respect for the complexity of the task, and will make sure that our ambitions are implemented in a sound manner, economically and legally.

In 2006, The Ministry of Petroleum and Energy will ensure that a proper process is initiated between the commercial actors to verify costs in all parts of the CO ₂-chain. Involvement of the commercial actors on land and offshore is vital to obtain a best possible overview of costs and benefits in the CO ₂-chain. Further planning of the facility for capture of carbon dioxide at the Kårstø gas fired power plant will be given high priority. This work will provide clarifications on costs and timetables for this project. Decisions on the best organisation of state involvement in this area will depend on thorough assessments of a wide range of issues of technical, economic and legal character, including state aid regulations. Clarifications on these aspects will be an important element of the work that will be carried out in 2006.

The prospects for using CO ₂ as a medium to enhance recovery from producing fields on the Norwegian Continental Shelf, is interesting from a resource management perspective, even though CO ₂ will compete with other mediums, such as natural gas and water, to enhance the recovery rate. From an environmental perspective, injection of CO ₂ for EOR 1EOR = Enhanced oil recovery-purposes could be a positive economic contribution to advance carbon capture and storage. However, realizing such a CO ₂-value-chain is demanding, as it implies added challenges compared to pure storage. In particular, the questions of sufficient volumes and right timing are challenging: How to make sure that sufficient volumes of CO ₂ are brought from large point sources to the fields offshore at the right time in the lifespan of the field?

Ultimately, CO ₂ used for EOR-purposes will be permanently stored in the abandoned reservoirs, hence the theme for this seminar - safe storage of CO ₂ – is highly relevant.

The importance of international cooperation
International cooperation is a key in order to develop cost-effective solutions for capture, injection and permanent storage of CO ₂. Norway is heavily involved in important initiatives for international collaboration in this area. This includes the Carbon Sequestration Leadership Form (CSLF), collaboration within the International Energy Agency (IEA), as well as within the European Union Framework Programmes.

Placing climate change on top of the international agenda at the G8-summit in Gleneagels, was in itself a major achievement. I will take the opportunity to show appreciation to the UK for their role in shaping the international dialogue on climate change. I hope that this process will be helpful in facilitating the negotiation process and dialogue on climate change in Montreal in Canada, taking place as we speak. The G8 has asked the CSLF and the IEA to cooperate and provide further input on CCS. I expect highly relevant and concrete results from this work.

I will meet with the EU Energy Commissioner, Mr. Piebalgs, later this afternoon. Carbon capture, use and storage is an important point of common interest between Norway and the EU, and a important issue in our energy dialogue.

With reference to good dialogues, I would also like mention the informal governmental group between North Sea rim countries and the European Commission on CO ₂ use and storage, as an important tool.

Safe storage of CO ₂
The focus for this seminar is on geological storage of CO ₂. We all have to be confident that CO ₂ is stored safely, so that CO ₂ is kept separated from the atmosphere for geological timescales. Careful site selection, good verification procedures and comprehensive monitoring activities are all key elements for safe geological storage.

Regulatory frameworks are important to ensure safe geological storage of CO ₂. I appreciate the various processes to develop the international legal framework to regulate injection and permanent storage of CO ₂ in sub-seabed geological structures.

The offshore Sleipner project in Norway represents nearly a decade of experience of monitoring and verification of geological storage of CO ₂. Comprehensive research and monitoring activities from this project indicate that injection and permanent storage of CO ₂ in sub-seabed geological structures can be done safely and reliably. I would like to highlight that the monitoring project at Sleipner is jointly financed by several governments, the EU Commission and industry. The Snøhvit field in the Barents Sea will start producing in 2007, and will provide further experience on CO ₂ geological storage. We need more full-scale projects of this kind to learn more about CO ₂ behaviour in underground geological reservoirs. The planned Miller project at the UK continental shelf is also very interesting in this regard.

To take the collaboration between UK and Norway a step further, we are today looking into ways of cooperating even closer on the development of common principles as a basis for regulating storage of CO ₂ in the North Sea. As announced by the Minister Wicks, we have decided to set up a North Sea Basin Task Force to this end. The joint declaration to be signed later this morning will be an important foundation for further cooperation between our two countries, and will hopefully be a good basis for collaboration on concrete storage-projects in the North Sea in the future.

Norway and the other countries around the North Sea share a common ground – literary speaking – when it comes to carbon capture and storage. Norway and the UK have ambitions to use CO ₂ for enhanced recovery on our continental shelves. I am convinced that this seminar will further the important discussions and challenges regarding geological storage of CO ₂ in the North Sea basin.

Thank your very much for your attention!