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Norway

Brief description:

General policy on Climate change and CCS

 

The government strongly emphasizes the capture and storage of carbon as a measure to reduce the country's CO2 emissions, and aims to realise large-scale CCS at power plants, such as Mongstad and Kårstø.

The public debate about gas-fired power plants has been ongoing for about 20 years. The opposition has been strong and wide, first as an opposition to gas-fired power plants in general, thereafter as an opposition to power plants without CCS. Over the past years this opposition has been weakened due to shortage of electricity and elevated electricity prices.

Emissions

 

According to Statistics Norway and the Climate and Pollution Agency, Norway emitted 50.8 million tonnes CO2 equivalents in 2009. This is a reduction of 5.4 percent compared to 2008. The reduction is particularly significant in the manufacturing industries and in the petroleum industry.

The emissions from the manufacturing industries decreased with 10.7 per cent from 2008 to 2009, the emissions are now 12.5 million tonnes.  Statistics Norway and the Climate and Pollution Agency estimates that the emissions may increase as the industry recovers from the financial crisis.

Also the emissions from oil and gas activities were reduced from 2008 to 2009. The reduction was in total 7.6 per cent or 1.1 million tonnes CO2 equivalents. In 2008 the emissions were particularly high because of flaring at the LNG plant at Melkøya. Also the total production of petroleum was reduced.

The Norwegian emissions increased with 8 per cent between 1990 and 2008. The three largest emission sectors are transportation, petroleum and industry. The report Klimakur 2020 estimates that the Norwegian emissions in 2020 will be approximately 59 million tons CO2 equivalents. It is estimated that the emissions from the petroleum industry subsequently decrease. Here it is assumed that for example the full- scale carbon capture facility at Mongstad is implemented.


UNFCC GHG emission information

 

Government commitments

Norway has through the Kyoto Protocol committed itself to annual greenhouse gas emission of in average 50.1 million tonnes for each of the five years between 2008 and 2012. Both in 2008 and in 2009 the emissions exceeded this. The Norwegian government has stated that the Norwegian obligation in the Kyoto Protocol will be fulfilled through a combination of emission reduction nationally and the purchase of quotas by companies and the Government. In addition to the Norwegian obligation to the Kyoto Protocol has Norway set at national target to exceed the Kyoto target by 10 per cent.

On a longer term, Norway will reduce the national greenhouse gas emission with 15- 17 million tonnes CO2 equivalents within 2020. This means that roughly two thirds of the total Norwegian mitigation is interior.

In 2005 the Stoltenberg 1- government recently elected delivered the Soria Moria decleration where the Government promised that a full scale capture plant at Kårstø should be built and financed by the Norwegian state as soon as possible.

 

The permission to build the power plant at Kårstø was given in 1996, together with a permission to build a power plant at Kollsnes. In 2000 it came to a conflict in the Parliament considering the discharge permit, which lead to the resignation of the Bondevik- government followed by the Stoltenberg- government. In Soria Moria from 2005 the government set a goal to build the full scale capture plant at Kårstø within 2009. The government also stated that if the gas- fired power plant on Skogn and Kollsnes where to be built, the state would also here contribute to achieve full scale capture plants.

Howerer, the most significant promise in the Soria Moria declaration was that there would not be built any new gas- fired power plant in Norway without carbon capture.

The government also established a governmental company that participates together with commercial actors in financing infrastructure for transportation of natural gas and through this contributes to carbon capture and storage.  The government also committed itself to increase the research on CCS.

In 2006, the Norwegian government granted Statoil permission for the building of a combined heat and power plant (CHP) at Mongstad. The government and Statoil agreed on developing CCS technology at Mongstad in two stages. First they are to build a CO2 Capture Technology Centre (TCM), followed by the construction of a large scale plant that includes CO2 capture, transport and storage. The large scale plant plans were cancelled in October 2013 due to bad project management, and the new government has promised to find a new large scale CCS project, but there are no concrete plans yet.

The government’s fifth national communication, submitted in 2010, reaffirms its intent to take a leading role in the development and deployment of CCS, with reference to experience gained from the Sleipner and Snøhvit operating storage projects.

 

CCS Policy and programmes /Funding and support mechanisms

The government has stipulated that two thirds of the required emissions abatement should be made domestically. A carbon tax was introduced in 1991, a cap-and-trade ETS was implemented in 2005 (linked in 2007 to the EU ETS), and there are tax incentives in place for CCS research through the SkatteFUNN Scheme.

It released a White Paper on climate change actions in April 2012, but with no new national measures. The CO2 tax rate was increased, and a new technology fund aims to provide €6.6 billion for R&D by 2016. Norway is, however, planning new legislation that will require all new gas power plants to be CCS-ready at start-up.

Its Climate Cure 2020, released in early 2010, outlined measures for attaining climate goals – a reduction of emissions of between 30% and 40% relative to 1990 by 2020. This highlights measures such as taxes, agreements, and state support for CCS.

Gassnova SF was established in 2007. The company’s main task is to manage governmental interest and support technology development within the area of CO2-management. Gassnova SF is to promote gas power technology with CCS in Norway through innovation, technology development and demonstration in demo and full scale. One of the aims of Gassnova’s work is to develop ways to reduce the costs linked to Carbon Capture and Storage. Gassnova also provide advice to the Norwegian Ministry of Petroleum and Energy in matters relating to Carbon Capture and Storage.

The government's Energi21 initiative on energy research prioritises CCS. Gassnova is managing on behalf of the government the CLIMIT Programme, a national programme for CCS research providing grants for the demonstration of CCS technologies.

As of July 2012, work on draft regulations on the transport and storage of CO2 in sub-sea reservoirs on the Norwegian Continental Shelf was continuing but no draft regulations had been submitted for public consultation. Norway aims to submit two new sets of regulations for public consultation within six to 12 months – one draft in relation to resource management, health and safety and the work environment, and the second dealing with environmentally safe storage of CO2.

CCS agencies and initiatives, including R&D

Gassnova contribute to the implementation of the technology development programme CLIMIT” in cooperation with the Research Council of Norway. The CLIMIT Programme is the Norwegian national programme for research, development and demonstration of technology for the capture, transport and storage of CO2 in connection with gas-based energy production. Research Council of Norway is in charge of the research projects and Gassnova is responsible for the prototype and demonstration projects.

It is possible for relevant players to apply for project grants for prototype and demonstration projects.

At Mongstad the Technology Centre is planned to handle up to 100,000 tons of CO2 and the centre will test CO2 capture on two types of flue gases using two capture technologies. TCM is a joint venture between the Norwegian state, Statoil, Shell and Sasol.

Four Kingdoms Initiative
As oil-producing nations, the UK, Norway, the Netherlands and Saudi Arabia established the Four Kingdoms Initiative in 2008 during
the International Energy Forum’s ministerial meeting in Rome. It aims to explore the potential for collaboration on CCS between countries committed to its development and deployment. A workshop to focus on the role of EOR in reducing storage costs was held in Saudi Arabia in early 2011. A second workshop is planned for 2012.

Storage potential

Having large deposits of oil and gas and having extracting this for several years, Norway has a unique potential when it comes to store CO2. It is possible that one can deposit large amounts of CO2 on the Norwegian continental shelf and that one can use the CO2 to extract more oil and gas from the reservoirs (EOR).

Norway has many years of experience when it comes to capture and store CO2.

Since 1996 Statoil have captured one million tonnes of carbon dioxide from natural gas production at Sleipner West and stored more than 800 metres below the seabed, in the Utsira formation. On Sleipner, CO2 is captured using a conventional amine process.

At the end of 2008 almost 11 million tonnes of CO2 have been stored. The
CO2 is monitored in various research projects funded in part by the EU. Also the Sintef research foundation and the Norwegian University of Science and Technology (NTNU) in Trondheim are involved in addition to several international research institutions.

At the Snøhvit field in the Barents Sea you’ll find the world’s first LNG plant with carbon capture and storage. Statoil is operator for the development and operation of Snøhvit. Gas production started in October 2007 and the first CO2 was injected into the reservoir in April 2008.

A separate pipeline transports the carbon dioxide from the Hammerfest LNG plant back to the Snøhvit field. There it is stored in a geological layer of porous sandstone, the Tubåen formation. More than 700,000m tons of carbon dioxide will be stored annually in this manner.

A separate monitoring programme has been established to examine how carbon dioxide behaves in the reservoir. This programme is partly financed by the EU.


Support mechanisms in Norway:


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