State Aid: Green light for development phase of the Mongstad CCS project
The EFTA Surveillance Authority adopted a decision today not to raise objections to the Norwegian State's financing of the development phase for the industrial Carbon Capture and Storage (CCS) project in Mongstad. The ultimate objective of the project is to capture and store the CO2 emissions from a refinery and a combined heat and power plant in Mongstad.
“CCS is an important element in the EEA climate change policy. The financial support for the development phase of the Mongstad CCS project is in line with the objectives of this policy.” says Ms Oda Helen Sletnes, President of the EFTA Surveillance Authority.
The Authority has already approved State aid to finance generic research in a small CCS facility at the Mongstad Test Centre. The Norwegian State will now finance technology and feasibility studies for an industrial scale CCS facility. These studies will be the basis for the decision on the financing of the construction and operation of the CCS facility, which the Norwegian Parliament (Stortinget) will take no later than 2016.
The aid for the development phase, which amounts to NOK 2.85 billion (EUR 375 million), is granted on the basis of an agreement between the State, Gassnova and Statoil. Under the terms of this contract, Statoil acts as a project executioner and will subcontract technology vendors and other suppliers in line with national and EEA procurement rules. The State will cover 100% of the costs incurred by Statoil in the course of the project execution. The aid to Statoil is well targeted to promotion of CCS while limiting possible distortions of competition and negative effects on trade.
The State will also cover the costs of Gassnova, which amounts to NOK 200 million (EUR 26 million). However, Gassnova will merely supervise the project execution without being involved in economic activities. The Authority has therefore taken the view that the funds allocated to Gassnova in the context of this project do not involve State Aid.
For further information, please contact:
Mr. Trygve Mellvang-Berg,
Press and Information Officer
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