This could pave the way for the implementation of this vital climate solution in Europe and the rest of the world.
The feasibility study from July 2016 showed that CO2 capture is technically feasible at three industrial emission sites in Norway Norcem's cement factory in Brevik owned by Heidelberg Cement, Yara's ammonia factory in Porsgrunn and the Fortum Oslo Varme's (FOV) energy recovery plant in Oslo ,.These sites delivered their concept studies for CO2 capture in the autumn of 2017.
Advanced planning studies
The Norwegian Parliament approved the revised national budget for the second half of 2018 and this included funding for the Norcem and FOV projects to begin advanced planning studies. Yara will not be proceeding with its project following mutual agreement between the company and the government. Norcem and Fortum Oslo Varme plan to capture around 400,000 tons of CO2 each.
CO2 will be transported by ship from the capture plant to an onshore facility on the Norwegian West Coast for temporary storage. CO2 will then be transported via a pipeline to a subsea formation in the North Sea for storage. Equinor, with its partners Shell and Total, are responsible for the planning of the storage facility. The concept study for storage will be completed during the course of 2018 and an advanced planning study will then be carried out. Only once these studies is completed for all stages of the CCS chain will the basis for an investment decision be in place.
Gassco delivered a concept study for transportation by ship in the autumn of 2017. Equinor and its partners have taken over responsibility for the transport part of the project during the advanced planning phase.
Investment decision in 2020/2021
Atkins and Oslo Economics have provided quality assurance on the project. The total cost (investment and operating costs for five years) for a chain where CO2 from Norcem is captured and stored is estimated at NOK 11.2 billion. The equivalent estimate for Fortum Oslo Varme is NOK 13.1 billion. Both estimates are at P50 level.
The Norwegian Parliament can make an investment decision for the project in 2020/2021. The project will then be able to commence operations in 2023/2024.
A storage for Europe
The inclusion of some overcapacity in the storage infrastructure has been planned. This means that the storage facility can receive CO2 from several emission sources. The selected pipeline can accommodate 4 million tons of CO2 per annum, i.e. 10 times the amount of CO2 from one Norwegian capture plant. During the concept phase, decisions concerning onshore facilities, wells and storage facilities will be taken in order to clarify the capacity of the infrastructure.
This will enable the Norwegian CCS project to lower the barriers for future projects. As the project is based on transportation by ship, the storage facility will also be easily accessible to CO2 emission sources in other European countries. In Sweden, Preem AB is also examining the possibility of capturing CO2 at its refinery in Lysekil for storage in the North Sea. Equinor, Shell and Total have signed contracts with several early phase projects. Additionally, they are examining the possibility of storing CO2 from different facilities in which they have their own stakes.