https://pubs.spe.org/en/jpt/jpt-article-detail/?art=7270
[This Carbon Capture and Storage (not Sequestration) project is only 80%
taxpayer funded. Three giant oil companies were signed up to fund the
other 20%, if they stay in with the higher estimated cost.]
Norway’s Northern Lights CCUS Project Hits a Yellow Light
Pam Boschee, Acting JPT Managing Editor | 29 June 2020
The full-scale carbon capture and underground storage (CCUS) project was
estimated to be a bigger-ticket item than forecast earlier, according to
an independent report published by the country’s Ministry of Petroleum
and Energy.
The cost of building and operating the project over 10 years, 80% of
which would be funded by the government, was pegged at up to $2.6
billion, about $827 million more than an earlier study forecast over 5
years of operation.
Equinor, Total, and Shell announced last month their intent to fund the
remaining 20% plus the transport of the carbon dioxide on ships and then
piping it out to the North Sea for underground storage.
The project was initially proposed to include two industrial sites as
the sources for the carbon dioxide: Norcem Brevik cement factory (part
of Germany’s HeidelbergCement), south of Oslo, and Fortum Oyj’s
waste-to-energy plant in Oslo.
The two consultancies that completed the study—Atkins Norge, part of the
SNC-Lavalin Group, and Oslo Economics—recommended the inclusion of only
the Brevik cement factory to lower the cost. The study also noted that
carbon dioxide emissions would need to cost 10 times as much as they do
today for the project to be profitable.
The government plans to make its recommendation by October. In a
statement released with the report, the ministry said, “The measure is
considered as costly. There is great uncertainty about the benefits, and
the measure could prove to be considerably unprofitable.”
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