Support to CCS Activities in

Developing
Countries - Norway

ADB: Carbon Capture and Storage Financing Roundtable

April 7, 2011. Singapore.

Dr. Per Christer Lund, Counsellor Science and Technology,

Innovation Norway, Tokyo

Agenda

1. Norway's motivation for CCS.

2. Domestic CCS projects and initiatives.

3. International support
 Norway’s global CCS footprint
World’s 2nd largest exporter of natural gas
World’s 2nd largest exporter of natural gas
World’s 5th largest exporter of oil
Share of the world’s population: 0,07 % World’s 5th largest exporter of oil
Share of the world’s population: 0,07 % The petroleum industry is important for Norway:
The petroleum industry is important for Norway:
3 x higher CO2-emission per capita than average: 0,21 % • One half
3 x higher CO2-emission per capita than average: 0,21 % • One halfofoftotal exports
13 x higher CO2-emission (oil & gas export): 2,73 % • One fourth oftotal
GDP
exports
13 x higher CO2-emission (oil & gas export): 2,73 % • One fourth of GDP
• One third of total Government income
• One third of total Government income
World’s 2nd largest Sovereign Wealth Fund USD 400 billion
World’s 2nd largest Sovereign Wealth Fund USD 400 billion

Courtesy: www.worldmapper.org
 The Norwegian Climate Policy

Political consensus:
•Global target: limit average temperature hike to 2°C above pre-industrial level
•Strengthen Norway’s “Kyoto commitment” from 1% above 1990-level to 9% below
1990 level
•Reduce Norway’s carbon emission footprint with 30% within 2020
•Reduction of 15-17 MtonCO2 including forestation
•Norway shall be “carbon neutral” within 2050
•Carbon emission reductions may be domestic/offshore reductions or through
purchase of international emission credits
•However – the target is that 50%-65% of the reduction shall be domestically

White Paper No. 34 (2006-2007) On Norwegian Climate Policy, published on 22 June 2007
Agreement on the White Paper between the government parties and three opposition parties (”Klimaforliket”), signed 17 January 2008
How to get there?

5
Norwegian CCS projects
Snøhvit LNG
0,7 mill ton/yr, 2007

Technology Center Mongstad

AY
0,1 m ton/yr, 2011

RW
1,4 mill ton/yr, 2016-18

NO
Sleipner NG reinjection
1 million ton/yr since 1996
The Norwegian CO2 Capture Research
Structure

The Gas Technology

Fund
2 billion NOK (350 mill. $)

The Technology Research Programme CLIMIT

~30 MUS$ / yr Industry

Project Support

Research Innovation Demonstration Commercialization

Priorities in Norway’s international
climate policy

Carbon capture and storage (CCS) as an important

technology for emissions reductions

• CCS in industry and power generation has the potential of reducing

emissions as much as 20-28 per cent of the necessary CO2 global
emissions reductions
• Norway has gained valuable experience of CCS through the Sleipner
Field since 1996, storing 1 million tons of CO2 under ground each year
• To help develop larger scale technologies, Government has introduced
a combination of financial support and regulation.
• Careful site selection and site monitoring are important to ensure safe
storage
International climate and forestation
support

Positions in the 2010 state budget:

• Increase the support to climate and forestation initiatives with 110
MUS$ to 370 MUS$ in 2010.
• Support projects with fast and cost-effective reduction in emissions
• Establish mechanisms to regulate emissions in an international
agreement.
• Continue ongoing projects:
• Adaptation and clean energy in Africa, Central America’
• Cooperation with China, India, Indonesia and South Africa
• Support research, professional cooperation, industry on clean energy; green
development and CCS.
• Operationalize initiatives for climate and clean energy; through UN and
development banks.
Multilateral activities

Norway supports a range of multilateral climate-

and environment protection initiatives:
• UN HABITAT: (25MUS$)
• UN Environment Program: (15MUS$)
• UN Development Program: Largest contributor 2009 (250MUS$)
• Global Environment Facility (GEF): (10MUS$)
• REDD++ (deforestation): (4 260 MUS$ - 2010-2012)
Support to NGO’s CCS initatives

Bellona:
• Most influential NGO in Norway; promoter of CCS since 1993.
• BEST: international partnership for industry, govt. to accelerate
development and deployment of CCS.
• Govt. support of 170,000 US$ (2010)

Zero Emission Resource Organization (Zero):

• Norwegian Environment foundation focus on emissions reduction
• Support to international work of 150,000 US$ (2010)
International agreements

Norway presses for inclusion of CCS in the Clean

Development Mechanism
• Political breakthrough in Cancun; procedures and modalities to be
developed (UN FCCC)

Supports the EU CCS financing scheme:

• Period 2009-2014
• Norway’s contribution 160 M€
• Focus on large-scale projects; Poland prioritized country.
Int. agreements:
• OSPAR and London-conventions on CO2 storage
• North Sea Basin Task Force: storage in the North Sea
CCS bilateral projects

China: bilateral MoU on environment cooperation.

• Increased focus on climate issues
• UNDP-led project on regional climate action plans in China
• Pledged 9.3 MUS$ support to NZEC (Near Zero Emission
Coal) – partners with EU and UK.

South Africa:
• Support of CCS-center
• 200,000 US$ per year over 5 years (2009 – 2013)
• Sasol (chemical company) signed up as partner in
Technology Center Mongstad
Support to international organizations

Carbon Sequestration Leadership Forum (CSLF)

• 23 countries; including the largest emitters
• Norway support to CSLF Capacity building fund 0,85 MUS$
• Norway leads the Technical Group
Member of the Global CCS Institute
EU’s Zero Emission Platform (ZEP)
• Stakeholders include industry/commerce; government and NGOs
• Norway is active member
International Energy Agency (IEA)
• Hosts Greenhouse Gas International Summer School at Svalbard
• Support 85,000 US$ (2010)
Support to global CCS funds

World Bank CCS Trust Fund:

• Established 2009
• Norway as largest contributor: 6 MUS$
• Added another 3 MUS$ in 2010
• 12 developing countries getting support
UN Industrial Development Organization
• Global CCS Industrial Roadmap
• Norway’s support 0.3 MUS$
• Focus on large emission points for industry in developing countries
ADB CCS Capacity fund:
• Norwegian support of 6 MUS$
Summary

• Norway is “part of the problem” of global climate change.

• Norwegian government has strong commitment to be “part of the
solution”
• Reduce Norway’s carbon footprint domestically
• Fund research and development of CCS technologies
• Fund pilots and full—scale carbon capture projects (TCM)
• Support and promote industry engagement in CCS
• Norway is world-leader on CCS technology; Sleipner, Mongstad, Snøvit projects;
R&D clusters at SINTEF and other research clusters

• Norway is promoting CCS on global arenas; political meetings;

media; summits.

• Norway is supporting and actively participating in the important

CCS intuitions and organizations.

• Norway is a significant financial supporter to global CCS initiatives.

 Foreign minister Jonas Gahr Støre:
High-Level Conference on Climate Change and Technology
in Bergen, Norway, on 27-28 May 2009

1. A comprehensive approach to reducing CO2 emissions must include

CCS.
2. Sustainable economic growth is possible, and CCS is a key step in the
transition to a low-emission society.
3. More full-scale demonstration plants, more R&D, and a major scaling
up of present CCS efforts are needed.
4. The right framework conditions must be put in place to stimulate
widespread CCS deployment.
5. Transport and storage projects must minimize risks of negative impacts
on the environment and human health and safety.
6. Private sector companies have a particular role to play in making CCS
commercially viable.
7. CCS must be accessible for developing countries.