Olje- og energidepartementet www.oed.dep.no

Carbon Capture and Storage in Norway

Mr. Erik Just OlsenAdviser,

Ministry of Petroleum and Energy

Olje- og energidepartementet www.oed.dep.no

Carbon capture and storage may amount to 20 - 28 % of total emission reductions by 2050!

Carbon Capture and storage

IEA baseline scenario: World total primary energy supply by fuel 2003-2050

Olje- og energidepartementet www.oed.dep.no

CO2 storage in Norway

Sleipner:

1mill. tonnes CO2 annually since 1996

Snøhvit:

700.000 tonnes CO2 annually from 2007

Olje- og energidepartementet www.oed.dep.no

Secure CO2-storage at Sleipner

Source: DnV

• Saline Aquifer CO2 Storage (SACS)

• CO2STORE

Olje- og energidepartementet www.oed.dep.no

Mongstad

Kårstø

Halten CO2 Project

Draugen

Grenland

Carbon Capture from Gas-fired Power Plants

Currently 3 projects in Norway:• Mongstad• Kårstø

• Halten CO2 Project

Norwegian government policy is that all new gas-fired power plants shall have CO2 capture technology. The government will co-operate with the industry to realize this as soon as possible.

Sleipner

Snøhvit

Olje- og energidepartementet www.oed.dep.no

Carbon Capture at Mongstad

• The Norwegian government and Statoil:agreement to establish CO2 capture at Mongstad

• Worlds largest full-scale CCS project of its kind

• Pilot from 2010, full-scale from 2014

Olje- og energidepartementet www.oed.dep.no

Kårstø

• Gas-fired power plant will start production in 2007

• The government will contribute to carbon capture and storage

• Report shows:

– USD 800 million capex

– Carbon capture can be in place by 2011/2012

Olje- og energidepartementet www.oed.dep.no

Halten CO2 Project

• Joint Shell and Statoil project

• 2-2.5 million tonnes captured CO2 from a gas-fired power plant used for EOR at Draugen annually

• Start up in 2011-2012• Have signalled a need for significant subsidies • Still in the planning phase, investment decision expected by 2008

Olje- og energidepartementet www.oed.dep.no

State owned CO2 company

• Safeguard state interests in the Mongstad CCS project and other projects concerning CO2 capture, transport and storage.

• An efficient tool to plan and execute CCS projects in co-operation with industrial partners.

Olje- og energidepartementet www.oed.dep.no

North Sea Basin Task Force

• Established November 2005 by Minister Wicks and Minister Enoksen

• Public and private bodies • Broad principles to form basis for regulating

transport, injection and permanent storage of CO2 in the North Sea sub-seabed

• Countries to make their own designated system

• Report to be presented in June

Olje- og energidepartementet www.oed.dep.no

Study of a CO2 transport and storage infrastructure in the North Sea

• Initiated by UK's Chancellor of the Exchequer, Gordon Brown and Norway's Prime Minister, Jens Stoltenberg June 2006

• Study scope: – Assess how a CO2-pipeline infrastructure could help enable CCS in the North Sea – Identify and evaluate benefits/costs – Identify barriers and required action

• Invitation to tender – deadline for response was February 23. • Governing board established • Delivery of report summer/autumn 2007