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– This is the largest climate project ever carried out in Norwegian industry, says the Minister of Oil and Energy, Tina Bru (H).
Carbon capture and storage will be a big part of the Norwegian climate solution. The government has chosen to call the initiative “Longship”.
Carbon sequestration at Klemetsrud can save the climate 400,000 tons of CO₂ each year. The recycling plant is the capital’s largest emission point, accounting for about 14 percent of the city’s greenhouse gas emissions.
Also at Norcem’s plant in Brevik, around 400,000 tonnes of CO₂ can be captured each year.
But now the government only enters with full support for one of the two facilities that are relevant in this round, namely the facility in Brevik. This is in line with the recommendations of an external quality assurance that the government received in June.
In the report, it was argued that the learning effect was not significantly greater when investing in two facilities.
The longship project also means the green light for the Northern Lights storage project in the North Sea. This facility will have a terminal in the Øygarden municipality in western Norway.
DEEP STOCK: Here’s one of the Northern Lights well frames on the seafloor. In this case, it is planned to store CO2 from Norway and Europe in the future.
Photo: Equinor
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Klemetrud can also join, if they raise more money
However, the government is in favor of a compromise in choosing between one and two plants. The government will make it possible for Fortum to join Langskip if they receive funding from the EU.
– The government is willing to offer NOK 3 billion for Fortum, but funds from others must be met first, says Bru.
According to Bru, this means that Fortum must raise around NOK 3.8 billion. This money can come, for example, from the municipality of Oslo, the EU Innovation Fund or other sources.
The government has previously asked both Norcem in Porsgrunn and Fortum in Oslo to apply for EU funding in the event of an outcome.
The Minister of Climate and Environment, Sveinung Rotevatn, recalls that this winter Norway decided to reduce between 50 and 55 percent of greenhouse gas emissions by 2030. He believes that then carbon capture and storage will not be avoided :
– For some industries, there are no good alternatives to achieve significant reductions in greenhouse gas emissions, says the Minister of Climate and Environment, Sveinung Rotevatn (V).
He cites the cement industry as an example.
Expensive for the state
The costs for both the capture facility and the storage solution are estimated at NOK 25.1 billion over 10 years. Of this, the state is scheduled to pay NOK 16.8 billion. The latter presupposes that Fortum can obtain the rest of the financing itself. If Fortum is unsuccessful, the state bill will be reduced by NOK 3 billion.
– For Norway, this is a huge boost at a time when we have less room for maneuver in our budgets, says Prime Minister Erna Solberg (H).
She emphasizes that the state in this project assumes a greater share of the costs and risks than usual.
– Now we hope that other players in Europe will follow and join, says Solberg.
Mixed feelings in Klemetsrud
At the Fortum facility on Klemetsrud in Oslo, there is joy and disappointment to track.
OPTIMIST: The director of carbon capture and storage at Fortum, Jannicke Gerner Bjerkås, believes that the company will be able to raise enough money on its own for the state to join in and sponsor its project.
Photo: Terje Bendiksby / NTB scanpix
– It is an important and gratifying milestone that the government is willing to establish a complete value chain for carbon sequestration, CCS Director Jannicke Gerner Bjerkås tells NRK.
At the same time, he does not hide the fact that he had wanted state support in line with what the Norcem plant in Brevik receives.
– We didn’t get that, but we did get a concrete and significant amount if we could get the remaining funding. We are very prepared for that, says Bjerkås.
– Do you have residual financing in force?
No, we don’t. This is something we are working on. We will apply for the EU Innovation Fund and then we will also look at other possibilities.
Cheers in Brevik
GOOD HUMOR: Little to say about the mood at Norcem’s Brevik plant this afternoon after news that the government is in favor of full support for the company’s carbon capture and storage project.
Photo: Bo Lilledal Andersen / NRK
At Norcem’s cement factory in Brevik, cheers were sparked when news came from the government.
– There is a lot of work behind this, and even more ahead. So this means a lot to us. We are very relieved and very excited, says project owner Tor Gautestad to NRK.
Maintenance manager Knut Erik Nielsen is also having a hard time hiding his smile today:
– Now we will create a new industrial history. It’s fantastic, he says.
Røkke rises on the stock market
The company Aker Carbon Capture, which recently spun off from Aker Solutions, will deliver capture and cooling technology to the Brevik plant. The company rises sharply on the Oslo Stock Exchange on news that the government is choosing Brevik as its main focus.
At the time of writing, the company is up more than 8 percent on the day. The largest owner is Aker, dominated by Kjell Inge Røkke.
BACKGROUND: If both capture facilities go into operation, the scope could be enormous:
