GASSNOVA’S ROLE

IN THE NORWEGIAN CCS DEVELOPMENT

10 September 2015

Tore Amundsen, CEO Gassnova 9/16/2015 1

GASSNOVA SF SHALL FACILITATE THE NORWEGIAN STATE’S PARTICIPATION IN CCS PROJECTS SO AS TO PROVIDE MAXIMUM BENEFIT FOR THE STATE OR STATE-OWNED ENTITIES. • CLIMIT PROGRAMME • CO2 TECHNOLOGY CENTRE MONGSTAD • CCS PROJECTS • ADVISORY FUNCTIONS

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NORWAY: GOVERNMENT: CONTINUED COMMITMENT TO CCS ACTIVITIES ALONG THE WHOLE VALUE CHAIN

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DEMO by 2020

POLICY INSTRUMENTS FOR CCS IN NORWAY

Gassnova

TCM CLIMIT Demo Invest.

The Research Council of Norway

FME …

Industry

Development of CCS technology suppliers

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CLIMIT

The national program for research, development and demonstration of technology for CO2 capture, transport and storage

Gassnova SF The Research Council of Norway 5

3 phases running from 2008 to 2015 Total budget of 340 MNOK of which 133 MNOK is funded by CLIMIT Improved energy efficiency (- 50%) 5 PhD + 3 post.doc + 8 masterstudents

SOLVENTS FOR THE NEXT GENERATON Post combustion CO2 capture systems

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Source: Aker Solutions

EUROPE’S FIRST CO2 CAPTURE TEST FACILITY IN CEMENT INDUSTRY, BREVIK, NORWAY

Small Scale Test Centre

Basis for qualification of CO2 capture technologies

Project on behalf of the European Cement Industry

Evaluation of full scale capture

Total budget: 93 MNOK

Partners: Norcem, HeidelbergCement and ECRA (European Cement Research Academy)

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CO2 TECHNOLOGY CENTRE MONGSTAD (TCM)

75.12% 20%

2.44% 2.44%

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MHPP Power Plant

Catalytic cracker

Area for future development

Amine plant

Chilled ammonia plant

Refinery

TCM: UNIQUE TESTING FLEXIBILITY IN AN INDUSTRIAL SCALE

Two feedstreams • MHPP flue gas (3.5% CO2)

• Refinery cracker gas (13% CO2)

Three operational areas:

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REDUCING TECHNOLOGY SCALE-UP RISK

Three years of extensive operational experience

• Transferable operational experience from TCM:

- Energy optimization

- Shut down/start-up procedures

- Scale-up

- Verification of simulation models

- Solvent degradation - waste handling

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REDUCING ENVIRONMENTAL SCALE-UP RISK

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Experience with emissions in an industrial scale

•Systematic approach to understand and manage emissions

Instrumentation and monitoring

Atmospheric chemistry, spread and degradation of amines

Monitoring the vicinities

• Increased understanding of equipment and material selection for both amine and chilled ammonia plants.

• Understanding mechanisms for solvent degradation and costs for reclaiming, make-up and waste handling.

• Design optimization – simulation models verified in an industrial scale can contribute to design optimization

REDUCING FINANCIAL SCALE-UP RISK

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TCM NEWS: US Funding for TCM Testing:

• NETL has awarded GE, Alstom and University

of Kentucky phase 1 funding to advance planning of their CO2 capture technologies towards large scale pilot testing.

• Phase 2 award for construction and execution of the tests is anticipated mid. 2016

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PRE-FEASIBILITY STUDY 2015 - RESULTS

NORCEM BREVIK YARA PORSGRUNN KLEMETSRUD OSLO

POTENTIAL CO2-SOURCES

• The pre-feasibility study has identified emission sources and storage sites which may be technical suitable for a full-scale CCS project

• More studies needed to identify the most suitable of the storage options

• State budget 2016

33

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• Continue R&D

• DEMOS urgently needed

• International collaboration

• Strong Governmental funding until market develops

• Smarter incentives for industry

• Market: carbon price

• World wide deployment

CONCLUSIONS PERSISTENCE IN CCS:

Thank you for your attention

www.gassnova.no