Ministry of Petroleum and Energy www.mpe.dep.no

An Ambitious Policy for Carbon Dioxide An Ambitious Policy for Carbon Dioxide Capture and Storage in NorwayCapture and Storage in Norway

8th International Conference on Greenhouse Gas Control Technologies, Trondheim, Norway

19. June 2006

Mr. Odd Roger Enoksen Minister of Petroleum and Energy

Ministry of Petroleum and Energy www.mpe.dep.no

The Energy ChallengeThe Energy Challenge

• Doubling of electricity demand between 2004 and 2030

• Use of oil and gas expected to rise to 60 percent in 2030

• Impacts of climate change are increasing

IEA-World Energy Outlook 2004

World primary energy demand

Ministry of Petroleum and Energy www.mpe.dep.no

The Energy Challenge - The Norwegian The Energy Challenge - The Norwegian SceneScene

0

20

40

60

80

100

120

140

1980 1983 1986 1989 1992 1995 1998 2001 2004T

Wh

Electricity Production

Electricity Consumption

• Energy supply requires increased capacity and less dependence on hydropower

• Need both renewable energy sources and fossil fuels

• Carbon dioxide capture and storage an important option

Ministry of Petroleum and Energy www.mpe.dep.no

A Large Potential for Carbon Dioxide A Large Potential for Carbon Dioxide Capture and StorageCapture and Storage

• IPCC: Economic potential for CCS in the next century between 200-2000 Giga tons of CO2

• Actual application of CCS depends on costs, environmental impacts, public acceptance and technology development, transfer and diffusion

Ministry of Petroleum and Energy www.mpe.dep.no

Norway in the leadNorway in the lead

• Energy nation

• Sleipner/Snøhvit

• Shell, Statoil: Considering the world's largest project using CO2 for EOR offshore

Ministry of Petroleum and Energy www.mpe.dep.no

An Ambitious Policy for Carbon Dioxide An Ambitious Policy for Carbon Dioxide Capture and Storage in Norway (1)Capture and Storage in Norway (1)

• Co-operate with industry to realize CCS at gas-fired power plants as soon as possible

• Establish value chain for CO2

• Ambitions to be implemented in a sound manner, economically and legally

Ministry of Petroleum and Energy www.mpe.dep.no

An Ambitious Policy for Carbon Dioxide An Ambitious Policy for Carbon Dioxide Capture and Storage in Norway (2)Capture and Storage in Norway (2)

Draugen

119 Mt CO2

Tjeldbergodden + Mongstad + Kårstø + Grenland

(GKV + Cracker + GKV + Yara)

(GKV + GKV)

90 Mt CO2

Tjeldbergodden + Skogn

(GKV + GKV)

83 Mt CO2

Tjeldbergodden + Kårstø:

119 Mt CO2

Tjeldbergodden + Mongstad + Kårstø + Grenland

(GKV + Cracker + GKV + Yara)

(GKV + GKV)

90 Mt CO2

Tjeldbergodden + Skogn

(GKV + GKV)

83 Mt CO2

Tjeldbergodden + Kårstø: Skogn

• Gassco, in collaboration with Petoro and Gassnova, asked to identify potential value chains for CO2

• 6 fields on the Norwegian continental shelf candidates for CO2 injection

• None of the identified value chains show a positive commercial return

Ministry of Petroleum and Energy www.mpe.dep.no

Need for further technology developmentNeed for further technology development

• In order for CCS technologies to be introduced on a commercially viable basis, there is a need for further technology development

• New or improved methods of CO2 capture can significantly reduce costs

• Gassnova focuses on a broad portfolio of different technology options

Sintef

Ministry of Petroleum and Energy www.mpe.dep.no

ConclusionConclusion

• CCS important in meeting energy and climate challenges

• Realizing CCS on a large scale is a very challenging task

• The Norwegian Government has ambitious goals