Development of a full-scale CCS project

The Government proposes to grant 360 million Norwegian kroner for the continued planning of a full-scale CCS (Carbon Capture and Storage) demonstration facility in Norway. The Government also proposes continued operations at the Technology Centre Mongstad (TCM) after the current agreement expires in August 2017. In addition, the Government proposes to grant 200 million Norwegian kroner for the research program CLIMIT.

- CCS is one of the Government's five prioritized areas for enhanced national climate action. In order to reach the Government's ambition to realize a full-scale demonstration project for the capture, transport and storage of CO2 , we have to work systematically to establish a thorough decision basis. The concept studies we initiate now is a necessary step on the path to realizing full-scale CCS in Norway, says Minister of Petroleum and Energy Tord Lien.

Gassnova will shortly announce concept studies with an option for FEED (Front End Engineering and Design). The studies will be the basis for the concept decision regarding, inter alia, capture technology, development concepts and infrastructure. The announcement will be based on the feasibility studies that were presented 4 July this year.

The authorities will enter contracts for the financing of concept studies with up to three capture projects. All the participants in the feasibility studies for CO2 capture may apply for funding to continue their projects. Other projects on the same maturity level, and which fulfil the criteria in the announcement may also apply. For CO2 –storage, the announcement will be based on the development of a storage site east of the Troll-field connected with an on-shore facility for off-loading of CO2.

The concept studies will go on until the autumn 2017. Continuation of the project to a FEED phase will be considered in the budget for 2018. This facilitates a potential investment decision within the summer 2019.

- It is important that we work systematically, using best practice from industry. The feasibility studies have demonstrated that it is possible to implement all three projects. My concern is developing a good basis to make a decision. We now have the opportunity to mature all three capture projects to concept selection, says Tord Lien.

The agreement between the State, Statoil, Shell and Sasol, which regulates ownership and operations of the Technology Centre Mongstad expires in August 2017. The Government proposes to continue the operations at TCM after the expiry of this agreement, and have agreed with Statoil and Shell to continue negotiations about the continuation of the technology centre, initially for another three years. The parties aim to reach an agreement within the end of 2016.