Norway’s €2.1bn CCS project gets regulatory approval

The funding, the largest ever single state award greenlit by the European Free Trade Association (EFTA) Surveillance Authority (ESA), will allow the Norwegian government to pay 80% of the costs of the ‘Full-Scale CCS Project’.

The project will involve the construction of CCS infrastructure at two locations: the Norcem cement factory in Brevik, and Fortum Oslo Varme, a waste-to-energy plant in the capital. CCS will allow carbon dioxide emissions to be captured at these locations before they escape into the atmosphere.

The project promises to become the first of its kind in Europe. Its €2.6bn budget will cover construction and 10 years of operation. Transportation and storage of the CO2 under the North Sea will be carried out by Northern Lights, a joint venture between Shell, Total and Equinor.

CCS plays a central role in Norway’s climate goals. One aim is to transform energy intensive industries, which make up around 25% of global CO2 emissions, into sustainable industries long-term. It is hoped that this project will act as a catalyst for other European projects and technology developments internationally.

‘Protecting the environment is at the heart of the European agenda, and ESA is pleased to work with Norway and the European Commission to find ways to support this important goal,’ said Bente Angell-Hansen, President, ESA. CCS is central to the European Commission’s recent strategy: A hydrogen strategy for a climate-neutral Europe. CCS is needed to capture emissions from the natural gas used to make ‘blue hydrogen’ in the transitional phase up to 2030, when it is hoped that technology advances and cheaper renewable energy will make ‘green hydrogen’ – produced using renewable energy – more viable.