Photo: Minister of Petroleum and Energy Kjell-Børge Freiberg; Image source: Government of Norway

Norwegian gov’t proposes funding of CO2-storage offshore exploration well

The Norwegian Government will make a proposal to Parliament that the country contributes funds for an exploration well for CO2-storage on the Norwegian Continental Shelf (NCS).

The Government said on Thursday that the proposal was made as a part of the Norwegian full-scale carbon capture and storage-project (CCS).

According to the statement, the Government has an ambition of “realizing a cost-efficient solution for full-scale capture, transport, and storage of CO2 in Norway, provided that such a project will contribute to technology development internationally.”

The proposal will be presented to Parliament in connection with the revised national budget for 2019. Pending the consent, Norway will fund most of the cost for the exploration well.

The total estimated costs are estimated at NOK 535 million ($62.8 million). The state’s share of the costs will be 75 percent with an upward limit of NOK 345 million ($40.5 million).

Norcem and Fortum Oslo Varme are currently studying CO2-capture at their respective plants – a cement plant in Brevik and a waste incineration facility in Oslo. At the same time, Equinor, Shell, and Total are working on a solution for transport and storage.

The Government added that the exploration well would provide more information about the quality and capacity of the reservoir. This information will be important when deciding whether to proceed with the CCS-project or not.

Minister of Petroleum and Energy Kjell-Børge Freiberg said: “I am glad that we have now reached an agreement with the companies regarding the cost allocation for the exploration well. This accord signals a strong commitment from the actors involved to take the necessary steps in order to keep the project on track.”

Minister of Climate and Environment Ola Elvestuen added: “In order to reach our climate goals, CO2-capture and storage is a necessary technology. The project can […] be crucial for reaching the goals of the Paris agreement to limit global warming to 1,5 degrees.”

Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email. Offshore Energy Today, established in 2010, is read by more than 10.000 industry professionals daily.

We had almost 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas.

These stats allow our partners advertising on Offshore Energy Today to get maximum exposure to their online campaigns. If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.