Norway's increased efforts on carbon capture and storage

Oct 15 2018

In the national budget for 2019, the Norwegian government proposes to allocate about NOK 670 million to work on CCS. This is an increase of more than NOK 160 million compared to the final budget for 2018.

The proposal includes funds for continuing the work on a full scale carbon capture and storage project in Norway. The Government also proposes to increase the funding for Technology Centre Mongstad (TCM) due to increased activity.

- Both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) point to carbon capture and storage as a necessary measure to reduce global greenhouse gas emissions in line with the climate goals at the lowest possible costs. Therefore, the Government has made CCS one of five prioritized areas for national climate action. In the national budget for 2019, the Government proposes to increase the funding for this important work, says Minister of Petroleum and Energy Mr. Kjell-Børge Freiberg.

The planning of a new full scale CCS project in Norway continues. The Government proposes to allocate NOK 175 million to his work in 2019. The government has earlier this year decided to fund FEED-studies of CO2-capture at two sites: Norcem's cement plant in Brevik and at Fortum Oslo Varme's waste incineration plant in Oslo. The companies Equinor, Total and Shell are cooperating on the studies of CO2-transport and storage, which will be continued as planned into FEED-studies in 2019.

When FEED-studies are completed, external quality assessment of the project will be carried out before the Government concludes on whether the project should be realised. An investment decision may be taken in 2020/2021. At the time of the investment decision the government will consider the results from the FEED-studies, learning effect vs. resources spent and how demanding the project will be within budget constraints. The investment decision will be presented to the Parliament.

- The government has an ambition to realise a cost effective solution for full scale CCS in Norway, provided this will result in technology development internationally. I am very pleased that the planning of this project now continues, and look forward to seeing the results of the ongoing studies, says Freiberg.

The government proposes to increase the funding of Technology Centre Mongstad to NOK 208 million in 2019. This is an increase of NOK 13 million compared to 2018 due to increased activity at TCM.

The TCM is the world's largest facility for testing and improving CO2 capture technologies and is a vital part of the government's work on CCS. Knowledge and experience from the TCM is also valuable for the planning of a new full scale CCS project in Norway.


Norwegian Government

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Issue 65 - Sept - Oct 2018

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