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Released September 27, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Norway has pulled the plug on finishing the world's most advanced carbon capture and storage (CCS) project at the Mongstad oil refinery.
The government has announced 'a change in direction' with regard to CCS development and said it will no longer finance the continued CCS expansion at the refinery, located northwest of the city of Bergen. The government said the investment is too risky. However, it plans to continue support for the Technology Centre Mongstad (TCM) research operation, promising additional funding for the next four years.
The decision will come a massive blow to global CCS efforts as the operation was providing key data on the most effective techniques used to capture and reduce emissions from fossil-fuel burning.
"CCS is essential to combat climate change," admitted Norway's Minister of Petroleum and Energy Ola Borten Moe, on delivering the news. "We have made considerable progress in developing the necessary technology. The Government now reinforces its commitment. A full-scale CO2 capture facility is still the objective. The Government has, however, concluded, after careful consideration, that the risk connected to the Mongstad facility is too high and has for that reason decided that the work on the full-scale facility will be discontinued."
He claimed that integrating a full-scale capture facility at Mongstad would be both 'challenging and costly'. The uncertainty of the project has increased because the refinery industry in northwest Europe is currently facing a hard time. The government added that the low price of CO2 permits and the economic recession in most of Europe have both contributed to the reduced commercial interest for CCS.
The troubled Mongstad project was officially opened last year, having cost around 770 million ($1 billion) and running more than two years late. It initially set out to run two CCS projects using different post-combustion carbon-capture techniques, one based on amine and the other on chilled ammonia solvent. The projects aimed to capture and scrub 80,000 tonnes of the gas from the Mongstad oil refinery and another 20,000 tonnes of emissions from the 280-megawatt (MW) combined heat and power (CHP) plant located on the site. For additional information, see May 10, 2012, article - Norway Opens Leading Carbon Capture Facility.
The government intends to invest in a CCS programme instead and will boost its investment in TCM's research by 49 million ($66 million) over the next four years. The government still intends to have at least one full-scale CCS project up and running by 2020. In order to qualify for funding, projects will have to 'contribute considerably to the development of technology' and also be prepared to support the development of further projects.
The Mongstad CCS project is owned jointly by state-owned energy company Gassnova SF (Porsgrunn, Norway) (75.1%), Norwegian oil and gas company Statoil ASA (NYSE:STO) (Stavanger, Norway) (20%), Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) (2.44%) and Sasol (NYSE:SSL) (Johannesburg, South Africa) (2.44%).
"The work carried out on carbon capture and storage (CCS) at Mongstad has been extensive and demanding, but it has also provided us with some important lessons and given us new knowledge of capture technology," commented Eldar Sætre, executive vice president for Marketing, Processing & Renewable Energy (MPR) at Statoil. "Even though the full-scale project will now be concluded, it is important for Statoil that all we have learnt will be of benefit to the industry in its continuing work on CCS. CCS is one of the most important technologies in the efforts being made to reduce carbon emissions from industry and from power production. The experience gained at Mongstad indicates that it is necessary to intensify the work being done to develop the technology and reduce the cost involved in so doing."
View Project Report - 300011699
View Plant Details - 1083076
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The government has announced 'a change in direction' with regard to CCS development and said it will no longer finance the continued CCS expansion at the refinery, located northwest of the city of Bergen. The government said the investment is too risky. However, it plans to continue support for the Technology Centre Mongstad (TCM) research operation, promising additional funding for the next four years.
The decision will come a massive blow to global CCS efforts as the operation was providing key data on the most effective techniques used to capture and reduce emissions from fossil-fuel burning.
"CCS is essential to combat climate change," admitted Norway's Minister of Petroleum and Energy Ola Borten Moe, on delivering the news. "We have made considerable progress in developing the necessary technology. The Government now reinforces its commitment. A full-scale CO2 capture facility is still the objective. The Government has, however, concluded, after careful consideration, that the risk connected to the Mongstad facility is too high and has for that reason decided that the work on the full-scale facility will be discontinued."
He claimed that integrating a full-scale capture facility at Mongstad would be both 'challenging and costly'. The uncertainty of the project has increased because the refinery industry in northwest Europe is currently facing a hard time. The government added that the low price of CO2 permits and the economic recession in most of Europe have both contributed to the reduced commercial interest for CCS.
The troubled Mongstad project was officially opened last year, having cost around 770 million ($1 billion) and running more than two years late. It initially set out to run two CCS projects using different post-combustion carbon-capture techniques, one based on amine and the other on chilled ammonia solvent. The projects aimed to capture and scrub 80,000 tonnes of the gas from the Mongstad oil refinery and another 20,000 tonnes of emissions from the 280-megawatt (MW) combined heat and power (CHP) plant located on the site. For additional information, see May 10, 2012, article - Norway Opens Leading Carbon Capture Facility.
The government intends to invest in a CCS programme instead and will boost its investment in TCM's research by 49 million ($66 million) over the next four years. The government still intends to have at least one full-scale CCS project up and running by 2020. In order to qualify for funding, projects will have to 'contribute considerably to the development of technology' and also be prepared to support the development of further projects.
The Mongstad CCS project is owned jointly by state-owned energy company Gassnova SF (Porsgrunn, Norway) (75.1%), Norwegian oil and gas company Statoil ASA (NYSE:STO) (Stavanger, Norway) (20%), Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) (2.44%) and Sasol (NYSE:SSL) (Johannesburg, South Africa) (2.44%).
"The work carried out on carbon capture and storage (CCS) at Mongstad has been extensive and demanding, but it has also provided us with some important lessons and given us new knowledge of capture technology," commented Eldar Sætre, executive vice president for Marketing, Processing & Renewable Energy (MPR) at Statoil. "Even though the full-scale project will now be concluded, it is important for Statoil that all we have learnt will be of benefit to the industry in its continuing work on CCS. CCS is one of the most important technologies in the efforts being made to reduce carbon emissions from industry and from power production. The experience gained at Mongstad indicates that it is necessary to intensify the work being done to develop the technology and reduce the cost involved in so doing."
View Project Report - 300011699
View Plant Details - 1083076
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
