GASSNOVA HAS A MAJOR AND VERY DEMANDING MANDATE, given to us by the nation of Norway: We are to help provide solutions for CO2 capture and storage (CCS), so that humanity does not make this world uninhabitable for coming generations.

1. NORWAY – A LEADING ROLE IN CCS DEVELOPMENT
Anne M. Blaker og Staale Aakenes, Gassnova SF 10/15/2012 1

2. Snøhvit
LOCATION OF CCS PROJECTS IN NORWAY
Existing
Mongstad
Kårstø Projects
Sleipner
Google

3. Few big CO2 emission points
Mainland Norway
In total 34 emission points
> 100,000 t/yr
3 emission points
>1,0 million t/yr
10 emission points
> 400,000 t/yr

4. NORWAY PUNCHING ABOVE IT’S WEIGHT IN CCS
• Oil and energy cluster
• R&D based industrial
development
• Financial resources
• Making fossil fuels sustainable
• A driving force vs. the climate
challenge
Photo: Scanpix

5. THE NORWEGIAN CLIMATE POLICY
• A Climate accord in the Norwegian Storting (parliament) :
• Global target: limit average temperature rise 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 40% within 2020
• Reduction of >20 MtonCO2
• Norway shall be “carbon neutral” within 2030
• 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
• Prime Minister Jens Stoltenberg’s New Year Address 2007:
• “Norway will take a pioneer role for development of technologies for CO2 capture and storage
within 7 years – demonstrated at the European CO2 Technology Centre Mongstad”
• “This is a large, national project and can be compared to the US Moon Landing project in the
1960’s”
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6. CCS IN NORWAY - STATE INVOLVEMENT
Regulator
Commercial market,
industry involvement
State taking an
active part
Technology development
2005 20XX

7. GASSNOVA SF
THE NORWEGIAN STATE ENTERPRISE FOR CARBON CAPTURE AND STORAGE
CLIMIT: Research and development program
– Support for technology development
Asset management
– CCS demo projects
– Ensure that the State utilises the resources in the
best possible manner
Advisor to the authorities
Page 7

8. CCS TECHNOLOGY DEVELOPMENT
ACTIVITIES IN NORWAY
- CLIMIT-programme (Technology development state aid)
Research - Research centres (for Environmentally Friendly Energy)
• BIGCCS Centre (CCS)
• SUCCESS (CO2 storage)
- ECCSEL (European CCS Laboratory infrastructure)
Development
- CO2 storage field laboratories (Svalbard and Hurum)
Demonstration - CO2 Technology Centre Mongstad – TCM
• In operation May 2012
Pre- - CCS from CHP at Mongstad
commercial • Under planning/Planned decision 2016
• Technology qualification programme
- Sleipner - 16 yrs of sub sea bed CO2 storage
Commercial - Industry participation - to develop an ownership
and operation model for CO2 transport and storage

9. TECHNOLOGY DEVELOPMENT
Cash Flow
[M€] Large investments
Long time horizon for commercialisation
Unclear frameworks
0 Research
CLIMIT/NRC
-1
Development & demo
CLIMIT/Gassnova
-10
Early mover projects
Gassnova
-
100
2012: ~14 M € ~11 M€ ~41 M€
Research Developm Demo Precom. Fullcom.

10. CCS TECHNOLOGY DEVELOPMENT:
SHORT AND LONG TIME PERSPECTIVES IN
THE CLIMIT PROGRAMME STRATEGY
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11. R&D&D PRIORITY AREAS
• Broaden the research and
increase the depth to obtain
basic insight in the important
chemical processes
• Priority to next generation
technology and more
groundbreaking solutions
• Increased international
project cooperation
• Across disciplines
Page 11

12. CO2 TECHNOLOGY CENTRE MONGSTAD
AMBITIONS
• Verify CO2 capture technology owned
by vendors
• Reduce cost and risk
• Development of market
• International deployment
Photo 20 April 2012
75.12% 20% 2.44% 2.44%

13. CO2 Technology Centre Mongstad
• Two technologies
- Aker Clean Carbon
- Alstom
• Two flue gas sources
• 100 000 tonnes CO2/y

14. FULL-SCALE CO2 CAPTURE MONGSTAD (CCM)
COOPERATION BETWEEN THE NORWEGIAN GOVERNMENT AND STATOIL
• 1,2 Mt/y CO2 at full capacity CH
• The CCM facility: an open process,
capturing CO2 from exhaust gas
• An open process: Need to manage
the additional health and
environmental challenges
• A technology qualification
programme is on-going
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15. FULL-SCALE CO2 CAPTURE MONGSTAD (CCM)
FIVE TECHNOLOGY SUPPLIERS HAVE BEEN SELECTED TO PARTICIPATE IN THE
TECHNOLOGY QUALIFICATION PROGRAMME
• Amine technologies:
– Aker Clean Carbon
– Mitsubishi
– Powerspan/
Huaneng Clean Research
Institute
• Chilled ammonia technology:
– Alstom
• Amino acid salt technology:
– Siemens
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16. FULL-SCALE CO2 CAPTURE MONGSTAD (CCM)
• Financed by the Norwegian State
• Project execution by Statoil
• Planning phase:
– Technology qualification programme Mongstad
• Post combustion capture technology
• TQP amine programme (HSE effects of amine, closing knowledge gap)
• Basis for concept selection 2014
• New competition
– Open for all qualified technology suppliers
– Pre engineering (FEED) 2014 – 2016
– Basis for investment decision 2016
– Planned start up 2020 16

17. SLEIPNER: 16 YRS OF SUB SEA BED CO2 STORAGE
Photo: StatoilHydro

18. CO2 TRANSPORT & STORAGE NORWAY
• Transport: Pipeline
• Geological storage: Offshore – saline aquifers
• Process for establishing CO2 Transport & storage:
− Potential storage locations nominated
− Announcement of areas
− Establish industrial partnerships
(similar to the petroleum industry)
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19. CCS FOR A BETTER CLIMATE
Functioning
market
International deployment
Reduced cost and risk
Framework conditions
Acceptance in society
Early CCS Demo
R&D and tech. verification

20. COST FOR ENVIRONMENT FRIENDLY POWER
Source: GlobalCCSInstitute.com

21. CLIMATE CURE: TOTAL ABATEMENT COSTS
EMISSION REDUCTIONS WITHIN 2020
15.10.20
21
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22. CLIMATE CURE:
ABATEMENT WITHIN PETROLEUM INDUSTRY
15.10.20
22
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23. COSTS FOR CCS – NORWEGIAN SOURCES
PETROLEUM RELATED ACTIVITIES, ONSHORE
Totalt (MNOK) Per år (kNOK)
Lavt Høyt Lavt Høyt
Investeringskostnader
Pre DG3 1 600 4 600
Fangstanlegget 4 000 7 000
Hjelpesystemer, tie-ins, an 1 500 4 000
Lager 1 400 1 600
Rørledning 1 800 2 100
Total investering 10 300 19 300 700 1 200
Driftskostnader 400 700
Totale kostnader 1 100 1 900
Per tonn unngått 1 300 2 300
CA$ 230 - 400
• Existing, but not a specific source - extensive cost for tie-ins & utilities
• Several site specific requirements included
• FOAK: Signficant planning costs
• Gas power, 1 Mt p.a.
• Offshore storage, 100 km pipelline Gassnova mai/2011

24. CCS COST EFFECT:
IMPACT ON COMPETITION
Source: Copenhagen Economics based on IEA (2005), Smale et al. (2006). McKinsey and Ecofys
(2006), and Climate Strategies (2007).

25. THE COST CHALLENGE
Innovate
Build
€/ton
capacities
Demonstrate!
Share it!
Build
NO, offshore tax acceptance
Robust
CO2 price
US, EOR Funding
Long term
policies
EU ETS Reinforce
0 commitment
Time

26. INTERNATIONAL COOPERATION
• International deployment of technology:
– R&D&D projects potential funding by CLIMIT
– Participation in international demo (TCM) and full scale
projects (CCM)
– Vendors and technology users
– A world market for technology
• A functioning market:
– Harmonized framework conditions and regulation
– Carbon price

27. Welcome to Mongstad!
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