Norway’s government has put is support behind a support a carbon capture and storage (CCS) project with Nkr17.1 billion ($1.8 billion) in backing to secure the world’s first full-scale CCS value chain.


Energy explored: Gain valuable insight into the global oil and gas industry's energy transition from Accelerate, the new weekly newsletter from Upstream and Recharge. Sign up here.

In a government White Paper submitted to the Norwegian parliament on Monday, the Oslo administration proposed launching the Longship CCS project — the name being a reference to vessels used by Vikings to raid large parts of Europe more than a thousand years ago.

“Longship is Norway’s largest climate project by far. It will lead to emissions cuts and facilitate development of new technology and thus new jobs,” Prime Minister Erna Solberg said during a press conference in Oslo.

Others must take Norway's lead

She did, however, stress that other countries and the industry must follow Norway’s initiative in order for the world to have a chance of reaching the climate goals set in out the Paris Agreement.

“For Longship to be a successful climate project for the future, other countries also have to start using this technology," Solberg said.

The government has proposed Norcem’s cement factory in Brevik as the first site for implementing the carbon capture scheme.

It also intends to fund Fortum Oslo Varme’s waste incineration facility in Oslo, providing that the project secures sufficient funding of its own as well as funding from the European Union or other sources.

Longship also comprises funding for the huge Northern Lights transport and storage project, a joint scheme between Equinor, Shell and Total.

Northern Lights will transport liquid carnon dioxide from capture facilities to a terminal at Oygarden in Vestland County. From there, CO2 will be pumped through pipelines to a reservoir beneath the seabed.

Total investments in Longship are estimated at Nkr17.1 billion, inclusive of Norcem, Fortum Oslo Varme as well as Northern Lights.

Operating costs for 10 years of operation are estimated at Nkr 8 billion, meaning the total cost estimate is Nkr25.1 billion.

Longship will receive state aid in accordance with negotiated agreements. The state’s portion of these costs is estimated at Nkr16.8 billion.

Minister of Petroleum & Energy Tina Bru said Longship involves building new infrastructure and that the government is laying the groundwork for connecting other carbon capture facilities to a carbon storage facility in Norway.

“This approach is a climate policy that works,” she said.