With a large, natural geological CO2 storage capacity area under the North Sea and more than 20 years of experience with CO2 storage, Norway is in a strong position to demonstrate CCS at scale. Sedimentary basins all over the world provide similar opportunities.
CCS is one of several climate priorities for the Norwegian Government, which has set an ambition to demonstrate CCS for as long as the technology has international relevance.
The Full-scale CCS project in Norway seeks to fulfill the objectives of both Government and industry by reducing investment barriers for business and developing sustainable value creation opportunities.
If the world has agreed climate targets and there is a growing consensus among international bodies that CCS is needed to achieve them, why has CCS not already taken off?
The reality is that to date there has been a lack of investment in industrial CCS and CCUS projects. The very same IEA, UN and EU reports which extol the virtues of CCS have also been quick to point this out.
This lack of commercialization has primarily been driven by several CCS specific market failures. So there is an obvious need for cooperation between the private and the public sectors to overcome market hurdles to increase investment in CCS implementation.
How then, do we unlock this investment? The key lies in demonstrating CCS to prove that it is viable, building open-access CO2 infrastructure and developing public-private cooperation.
The first demonstration project will serve as a platform for further innovation in technology, business models, regulations and policy.
The Norwegian contribution
CCS and CCUS has been proven to be technically viable in several existing projects around the world. Globally, there are large-scale CCUS projects already in operation, such as the Statoil Sleipner project, the SaskPower Boundary Dam project and the Shell Quest project.
All of these projects are incredibly useful and the Full-scale CCS project will be building on the lessons that have been learned and shared as CCS technology has developed over the years. In addition, the Full-scale project aims to address more of the market failures which have so far held up investment in CCS as a broad climate mitigation tool. The Full-scale CCS project aims to do this by:
- Demonstrating the full CCS chain as a climate mitigation tool;
- Establishing an open access transport and storage infrastructure with spare capacity;
- Capturing CO2 from a cement factory and/or a Waste to Energy (WtE) plant, including capture from partial bio sources
- Testing CCS under the condition of relevant EU regulation.
Full-scale project is also driven by public-private cooperation with a shared
responsibility for investment. Each industrial partner is responsible for
designing their own project, while the state coordinates and creates a
framework for each partner’s role.