Wednesday 21 December 2016

The Ministry of Petroleum and Energy has commissioned Gassco to support the state-owned Gassnova company in continued work on a full-scale facility for carbon capture, transport and storage.

Gassco is responsible in this work for further studies on shipping CO2 between capture locations in eastern Norway and west Norwegian storage sites.

An appropriation of NOK 360 million is proposed by the government in its 2017 budget for the commitment to a full-scale project on CO2 capture, transport and storage.

Gassco and Gassnova submitted a feasibility study on CO2 shipment by sea to the government this July. Capture locations were Norcem in Brevik, Yara at Herøya and Klemetsrud EGE in Oslo.

“Our study showed that transporting CO2 by ship is feasible, and we’re pleased that the government has chosen us to progress into the conceptual and pre-engineering phase,” says Gassco CEO Frode Leversund.

“We’ll continue working on the technical foundation and cost estimates, and then go out to the market to obtain specific bids from players in maritime CO2 transport.

“These tenders will form part of the basis for the government’s decision on investing in and realising the project.”

The government is planning to take a decision on investing in a CO2 value chain in 2019, and at least one facility could be ready for operation in 2022.

Overall planning and investment costs will depend on how much CO2 is to be captured and where, and on how many transport vessels will be required.

Both pipelines and ships represent possible transport solutions, but limited volumes and long distances in this value chain mean vessels will be more cost-effective and flexible.

“Providing the government and politicians with a solid decision basis will be crucial for the success of CO2 transport and full-scale CO2 management in Norway,” observes Leversund.

“Successful realisation of this project could provide the basis for handling much larger CO2 volumes, and thereby make an important contribution to achieving the climate goals in the Paris agreement.”