State Aid: ESA approves financing prolongation for Mongstad CCS Project

The EFTA Surveillance Authority (ESA) has today approved a prolongation of Norway’s financing for the flagship carbon capture testing facility established in Mongstad (the TCM). The TCM will receive financing for a further three years and four months, facilitating continued development of carbon capture and storage technologies for use in the fight against climate change.

The decision comes shortly after ESA approved EUR 2.1bn (NOK 22.2bn) in aid to capture CO2 from two installations and to store it under the seabed. Today’s aid measure supports the TCM in making CCS technology a sustainable industry with widespread cost-effective deployment possible at scale.

“CCS technology, properly deployed, can limit the impact that industrial processes have on the environment. It is important to support the development of these technologies”, said Bente Angell-Hansen, ESA President.

The total operating budget of the TCM is estimated at NOK 752 million, of which approximately NOK 578 million (EUR 54 million) is granted as aid over the prolongation period. In 2017, ESA approved NOK 652 million financing of the Mongstad project.

A non-confidential version of the decision will be available on ESA’s website as soon as possible.