Norway launches £2.1 billion Longship CCS project

Sep 23 2020

It will see Norway invest in three major CCS projects contributing around two thirds of the total costs to build and run them.

The Norwegian Government proposes to first implement carbon capture at Norcem’s cement factory in Brevik. In addition, the Government also intends to fund Fortum Oslo Varme’s waste incineration facility in Oslo, providing that the project secures sufficient own funding as well as funding from the EU or other sources.

Longship also comprises funding for the transport and storage project Northern Lights, a joint project between Equinor, Shell and Total. Northern Lights will transport liquid CO2 from capture facilities to a terminal at Øygarden in Vestland County. From there, CO2 will be pumped through pipelines to a reservoir beneath the sea bottom.

Longship facilitates the further development of CCS both in Norway and Europe, said the Government. The project has been matured to a level required for an investment decision, and the decision basis shows that all parts of the project are feasible. 

The project also involves risks. For Longship to have the desired effect, an ambitious development of climate policies in Europe is needed.  The risks are primarily connected to the economy of the project, such as the technical integration of the different parts of the project, the scope of following projects and necessary support schemes for such projects from the EU and individual countries. What is not at risk is the safety and integrity of the storage solution for CO2. 

For many years, various Norwegian governments have supported technology development, test and pilot projects, and underscored the importance of carbon capture and storage as an important climate tool internationally. The present Government has followed up this work and made targeted efforts on CCS since 2013.

"Building bit by bit in collaboration with the industry has been important to us in order to be confident that the project is feasible, said Minister of Petroleum and Energy, Tina Bru. "This approach has worked well, and we now have a decision basis. Longship involves building new infrastructure, and we are preparing the ground for connecting other carbon capture facilities to a carbon storage facility in Norway. This approach is a climate policy that works."

The total investments in Longship are estimated at NOK 17.1 billion. This includes both Norcem, Fortum Oslo Varme as well as  Northern Lights. The operating costs for ten years of operation are estimated at NOK 8 billion. The total cost estimate is thus NOK 25.1 billion. Longship will receive state aid in accordance with negotiated agreements. The state’s part of these costs are estimated at NOK 16.8 billion.

Norwegian Government

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