On behalf of the Ministry of Petroleum and Energy, Oslo Economics, in collaboration with Atkins Norge, has carried out a quality assurance (QA2) of a demonstration of full-scale carbon capture and storage (CCS).
The demonstration project constitutes a complete chain for capture, transport and geological storage of CO2. It will consist of capture facilities at Fortum Oslo Varme’s energy recovery plant at Klemetsrud and/or Norcem’s cement plant in Brevik, with geological storage in the Aurora-license on the Norwegian Continental Shelf. Furthermore, Northern Lights will have storage capacity for third party volumes.
The project’s goal is to contribute to a necessary development of CCS so that the long-term climate goals are achieved at the lowest possible cost.
The project has an expected cost of NOK 25,1 billion with two Norwegian capture facilities, transportation by three ships and storage in two wells, including possible liquidation costs. The Norwegian state’s share of the total cost is considerable and can reach NOK 22,2 billion. By choosing a minimum alternative the costs for the Norwegian state may be reduced to NOK 13,9 billion. A high carbon price is important for further technology improvement. An ambitious climate scheme with a carbon price about ten times as high as today’s price will facilitate many following capture facilities and a socioeconomically profitable demonstration project.
