Tale/innlegg | Dato: 20.05.2015 | Olje- og energidepartementet
Check against delivery
I would like to begin by giving compliments to the hosts. Norcem and the Heidelberg group have taken a clear stance in the debate on CCS by their positive attitude and their belief in what can be achieved!
This is encouraging!
The capture project in Brevik has got both national and international attention. Also in Telemark you are proud of Norcem. And you should be! This is a unique project on a global scale – being the first cement factory in the world to build a test facility for CO2-capture.
And it is important! Cement industry emissions alone accounts for five percent of the world's greenhouse gas emissions! Moreover, in cement production it's the raw material that is the cause of CO2-emissions. Fuel substitution is not an option. This makes CCS a necessity.
I would also like to both commend and congratulate CLIMIT - the national research programme for CCS-technologies. It is their tenth anniversary, and since the beginning in 2005, they have supported more than 300 projects with a total of about 1,7 billion kroner.This has also triggered about 1 billion kroner in funding from industry and other actors.
CLIMIT is an important catalyst for CCS research and demonstration. Many projects that get support from CLIMIT would not be realized without it. Governmental funding trigger quality research that benefits society. The Heidelberg group and Norcem have seized the opportunity, and this is by far the biggest project supported by CLIMIT.
Everyone involved deserve credit for the work done so far – and encouragement for the important steps ahead.
When it comes to carbon capture and storage – it is challenging, it is expensive and it demands a comprehensive approach. Some ask; Why should we bother? - Let me tell you why.
On the one hand, the global energy demand is continuously rising. World population is increasing, and at the same time more and more people enjoy increased welfare and a higher standard of living. Access to energy is vital to ensure this positive development.
On the other hand, we need to tackle climate change and we need all the “tools in the toolbox” to do so.
This includes investing in more renewable energy production, technologies and incentives that promote energy efficiency, while producing our fossil fuels in the most efficient way possible. Because - In every scenario fossil fuels will continue to play an important part of the energy mix for the foreseeable future.
It is in this context both the International Panel on Climate Change, the European Commission and the International Energy Agency are clear on the importance of CCS.
CCS technologies will form a vital part of the solution. We need to establish demonstration projects that are viable and thereby develop technology further and reduce costs.
We need to move up the learning curve and down the cost curve!
Because reaching the two degree scenario will be much more expensive without a broad implementation of CCS.
Having established why we need CCS – the central question is how.
Last fall, we presented our CCS strategy, underlining the important part that capture and storage of CO2 plays in the Government's climate commitment. The policies and measures presented in the strategy, include a wide range of activities like research and development, full-scale demonstration and international CCS cooperation.
As you all know, The Norwegian petroleum sector, has led the way in carbon capture and storage, with world leading facilities at the Sleipner and Snøhvit gas fields.These fields represent the only full scale CCS projects in Europe that are operational. In addition, we have the world class CO2 Technology Centre at Mongstad. (TCM)
Norway aims to be at the forefront in developing and promoting this technology. The policies and measures presented in the strategy can be ordered along three different paths:
One: Supporting the realization of full scale demonstration facilities
Two: Research, development and demonstration
And Three: Efforts to demonstrate CCS internationally
Full-scale project in Norway – feasibility study
Research and development is important for projects both nationally and abroad. But in the following, I will talk specifically about the potential for full scale demonstration in Norway. Due to our hydropower we have few large sources of CO2 emissions in Norway.
Our largest emissions points – the Mongstad refinery, the Hammerfest LNG-plant and the Kårstø gas processing plant, have already been systematically analysed with regard to CCS.
Handling CO2-emissions from industry, such as aluminium, cement and fertilizers, seems more relevant at the moment.
Two weeks ago, Gassnova delivered its mapping study on potential full-scale CCS projects in Norway to the Ministry of Petroleum and Energy. The study shows that several industrial actors, including Norcem and Yara, are willing to continue studying the possibilities for CCS.
Transportation of CO2 by ship and pipeline is already being conducted in several sites today, and is a more technologically mature process than that of capturing and storing it.
Transport of CO2 by ship is a commercial service that can be offered by several possible suppliers. Gassco has documented that a ship-based solution will be the most cost-effective solution when transporting limited amounts of CO2 over relatively long distances.
When it comes to storage, this is the most complicated part and where we still need to make further progress. We are looking at different alternatives, including existing storage sites and oil and gas fields in late-stage production.
We are also considering an EOR-pilot to see if CO2 can be used to increase oil production from the Norwegian Continental Shelf. In the process of turning ambitions into actual results, there is no doubt that all parties have to make significant contributions.
Even though I represent a liberal party with less enthusiasm about state involvement, I realize the need for the authorities to play an active role realizing our CCS-ambitions.
I acknowledge that the state will have to make substantial financial contributions to make this happen. And we have lifted the planning of transport and storage off the shoulders of companies interested in capture.
But we also need the industry to do their part - and commit resources to such projects! The feasibility study gives us a good basis for taking a decision on the way forward. Realizing a full-scale CCS demonstration by 2020 will be challenging.
The Government will now examine the pre-feasibility study and its recommendations, and will provide an orientation to the parliament in the budget for 2016.
At the same time, and as I briefly mentioned earlier:
We are working along two tracks: Realizing a full scale CO2-facility in Norway. But we have also agreed to participate in a European cooperation with the goal of establishing such a facility in Europe.
Ladies and gentlemen, it is time to summarize.
There is no easy solution and no quick-fix to make CCS widespread neither in Norway nor abroad.
We need to act on a number of areas to make CCS part of the solution in a world that needs to handle both the issue of climate change, and the increasing demand for energy.
This government gives high priority to the work on CCS and we stand by our ambitions. We have chosen a step-wise and systematic approach.
If the tasks at hand appear difficult, we can seek inspiration in the words of the American philosopher William James:
It is our attitude at the beginning of a difficult task which will affect its successful outcome.
This goes for all parties involved, government, research community and the industry.
That´s why I take great inspiration from visiting companies who with their positive attitude are working hard to lead the way forward.
I would also like to commend the engineering communities who have to come up with practical solutions to the ambitions of both politicians and interest groups.
Thank you for your attention and good luck with the rest of the conference!