Thursday, October 6, 2016

Norway unveils plan to develop industrial CCS portfolio

Europe's embattled carbon capture and storage (CCS) sector has received a much-needed shot in the arm with the news the Norwegian government is to significantly expand its portfolio of carbon capture demonstration projects.

The government announced today it is to provide NOK1.3bn ($163m) to support three large-scale industrial carbon capture and storage demonstration projects, while also approving a three-year extension of the Technology Center Mongstad (TCM) CCS test facility, which is jointly owned by Gassnova, Statoil, Sasol and Shell.

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A new agreement on the ownership and operation of the world-leading research centre is now expected before the end of the year.

The three industrial CCS projects are being proposed by ammonia producer Yara, cement production firm Norcem and waste management outfit Klemetsrud.

Experts said that if all three projects now proceed to a final investment decision they will collectively cut Norway's carbon emissions by five per cent.

The news was welcomed by Dr. Luke Warren, chief executive of the CCS Association, who said the "hugely encouraging announcement... could once again place Europe among the leading regions developing CCS around the world".

"The fact that Norway has chosen to develop CCS on three very different industrial sites demonstrates the massive importance of CCS to sectors such as steel, cement, chemicals and refining," he said. "Industrial CCS projects such as these are important not only in terms of their contribution to emissions reductions, but also to ensuring a long-term sustainable future for these vital industries - retaining their tremendous contribution to job creation and GVA."

CCS is widely regarded as critical to meeting global emission reduction goals, given its potential to capture emissions from industrial processes and deliver negative emissions in conjunction with biomass power.

However, the industry has endured a slow evolution, while the sector in Europe was hit last year by the UK government's decision to shelve plans for a new large-scale demonstration project.


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