威力彩玩法

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31 Aug 2018, 13:36
Julian Wettengel

Norway bets on gas and CCS to complement Europe鈥檚 energy transition

The Draupner platforms in the Norwegian North Sea form a key hub in Norway鈥檚 gas pipeline network. Photo - 脴yvind Hagen / Equinor.
The Draupner platforms in the Norwegian North Sea form a key hub in Norway鈥檚 gas pipeline network. Photo - 脴yvind Hagen / Equinor.

With its vast amounts of hydro energy, many would like Norway to become Europe鈥檚 鈥済reen battery鈥, supplying neighbours with steady power when there is little wind or sun. An extreme heat wave and dry weather in the first half of 2018 showed the limitations of this vision. The Norwegian government itself is focusing on natural gas exports, which it sees as a climate-friendly alternative to oil and coal for a continent with ever-stricter climate targets. Now, the Scandinavian country is developing plans to capture and store huge amounts of CO鈧 in empty gas fields under the seabed 鈥 and wants financial support from the EU to help showcase the idea鈥檚 viability. But scepticism over carbon capture and storage (CCS) means support is far from certain. [Updates with note on government reshuffle.]

[Note: On 31 August 2018, Norway鈥檚 Conservative Prime Minister Erna Solberg replaced her minister for oil and energy in a cabinet reshuffle. Terje S酶viknes .]

鈥淭o be a battery for all of Europe? That will never be possible. We are huge on energy, but not that huge.鈥 Terje S酶viknes chuckles. When the Minister of Petroleum and Energy sits down with a group of听 journalists from Germany in his Oslo office in June 2018, drier-than-normal weather and unseasonably high temperatures over many weeks have depleted Norway鈥檚 hydro power. 听Over the following months, record low stocks in reservoirs will and trigger electricity imports from neighbouring countries.

While supply security for the coming winter is not at risk in the country that , (NVE), its role as a steady electricity supplier for Denmark, Sweden and others might be.

The journalists鈥 meeting with the minister is an early stop on a two-day government-organised press tour entitled 鈥淣orway麓s contribution to the German energy shift鈥. For years, the European Union has focussed on the as 鈥淓urope鈥檚 green battery鈥. The idea is that steady hydro power can be used to supply neighbouring countries at times of low wind yield.

Norway's largest river power plant Vamma started operation in 1915. Source - Julian Wettengel 威力彩玩法 2018.

What鈥檚 more, pumped storage facilities could take in excess renewable electricity on windy days in northern Europe, store the energy over various time horizons and send it back through interconnectors like Nordlink, the German-Norwegian power link currently under construction in the North Sea. German politicians have hailed the project as the key to making the German Energiewende a European project.

Germany鈥檚 energy transition 鈥 decarbonising the economy without relying on nuclear power 鈥 began as a isolated expedition of rapid renewables expansion more than 20 years ago. Today, the current European Commission has made completing the one of its priorities. is to facilitate 鈥渢he transition to a low-carbon, secure, and competitive economy鈥. While , joint energy and climate goals already set the framework for a future, interconnected, internal energy market in which countries step in to help each other out when supply falls short.

Quick facts on Norway鈥檚 energy system

  • 3rd largest exporter of natural gas in the world (behind Russia & Qatar), but produces only 2% of global crude oil demand
  • Nearly all oil & gas produced on the Norwegian shelf is exported
  • 95% gas exports go to Europe via pipelines, 5% exported as LNG
  • Norwegian gas provides about 25 % of the EU's gas demand, Germany biggest customer
  • oil and gas equals about half of the total value of Norwegian exports of goods at about 45 billion euros in 2017
  • have been produced so far
  • total length of gas pipeline network: 8,800 kilometres
  • About produced by hydropower plants
  • 1,550 hydropower plants; 1,000 storage reservoirs (half of Europe鈥檚 reservoir storage capacity)
  • Norway has highest share of electricity produced from renewable sources in Europe

In his meeting with the journalists, Norway鈥檚 energy minister dampens expectations of direct electricity flows: 鈥淚t鈥檚 important that we can offer flexibility through the interconnectors, but of course there are also limitations,鈥 says S酶viknes. For him, Norway鈥檚 large reservoirs of natural gas are 鈥渕ore important鈥 when it comes to balancing the power systems and securing Europe鈥檚 energy supply during its transition to a low-carbon economy. S酶vikne鈥檚 arguments are in line with those of the German gas industry, which presents the fossil fuel as a clean alternative to oil and coal in power production, heating and transport. [Read the full story in the 威力彩玩法 dossier Industry bets on gas as last trump card in Energiewende]

Reversing the flow

Norway is the third largest gas exporter in the world and sells nearly all of it on the European market. In 2017, four decades after Norwegian gas exports began, the country鈥檚 gas grid operators 117.4 billion standard cubic metres to continental Europe and the UK. Germany receives up to a third of its gas imports from Norway.

As the world starts switching from fossil fuels to renewables, Norway is setting its sights on a different business model. The country has exported vast amounts of carbon in the form of crude oil and natural gas since the 1970s, helping it build up billions of euros in its 鈥 the Government Pension Fund Global. Now it鈥檚 offering to take back the carbon 鈥 at a price.

Photo of Europe鈥檚 biggest processing plant K氓rst酶. Photo - Julian Wettengel 威力彩玩法 2018.

The enormity of Norway鈥檚 gas operation is apparent at K氓rst酶. Europe鈥檚 biggest processing plant is a labyrinth of pipes, flare towers and tanks on the North Sea coast, just 40 kilometres north of the country鈥檚 third largest city Stavanger. It is connected to Norway鈥檚 extensive 8,800-kilometre network of subsea pipelines, which links about 50 active offshore gas fields and onshore terminals directly to countries in continental Europe and the UK.

Here, Tor Martin Anfinnsen lays out Norway鈥檚 vision for the future. Anfinnsen is Senior Vice President Marketing and Supply at Equinor, the largely state-owned oil and gas company formerly known as Statoil. In his view, the solution to Europe鈥檚 difficulties in reaching climate targets is capturing the CO鈧 that is emitted when burning or using natural gas, sending it to Norway and storing it 1,000-2,000 metres below the North Sea bed 鈥 where the gas came from in the first place. Ideally, large parts of today鈥檚 infrastructure could be used after some refitting to transport the CO鈧.

鈥淭丑别 storage possibilities off our coasts are practically unlimited,鈥 . 鈥淲e could store all European emissions for hundreds of years.鈥

Gas pipelines on the Norwegian continental shelf. Source - Norwegian Petroleum Directorate.

(CCS) as vital to keeping global warming well below two degrees Celsius 鈥 but it is expensive, as Norway experienced in 2013. After escalating costs and a change of political leadership, the Norwegian government for the development of full-scale carbon dioxide capture, putting an end to the project former Prime Minister Jens Stoltenberg had called Norway's "Moon Landing".

Now, the Norwegian government is giving CCS another go. It wants to set up a full-scale demonstration project to show the technology鈥檚 feasibility on an industrial scale from capture, via transport to storage 鈥 called 鈥淣orthern Lights鈥. Whereas the last project focussed on capturing carbon emissions from fossil power plants 鈥 which would in theory make it possible to keep these running even in times of ever-stricter climate targets 鈥 oil and energy minister S酶viknes explains his adapted approach:

鈥淣ow, we鈥檙e focussing on the industrial sector, because here we have no other option,鈥 he says. 鈥淭丑别re are unavoidable CO鈧 emissions as part of the industrial processes.鈥 S酶viknes hopes that this shift makes investments by other European countries more likely.

鈥淚nvestment and operational costs during the test period may be between 1 and 1.5 billion euros, and of course that鈥檚 a lot of money for just one country. We are seeking cooperation especially when it comes to the European Union.鈥 The Norwegian government has emphasised the importance of including CCS in the EU鈥檚 relevant support mechanisms, for example the .

鈥淵es, projects in Norway will be eligible as Norway is a member of the European Economic Area and therefore part of the EU Emissions Trading System,鈥 Anna-Kaisa Itkonen, spokesperson of the European Commission told the 威力彩玩法.

The European Union acknowledges the role of CCS in reaching the EU's long-term emissions-reduction goals. The Innovation Fund is currently being developed to be set up as part of the (ETS) to help the EU reach its 2030 climate goals. The fund will support low-carbon innovation in energy intensive industry, carbon capture and utilisation (CCU) technologies, innovative renewable energy and energy storage technologies, and demonstration projects on the environmentally safe capture and geological storage of CO鈧 鈥 CCS. According to Itkonen, the first call for projects should take place in 2020.

Norway鈥檚 goal is to have an investment decision for the demonstration project in 2020 or 2021 and to start operations in 2024. The Norwegian government has not yet approached the European Union with a request for financial support for the CCS project, Itkonen told the 威力彩玩法.

Norway's plans might be "bigger than necessary" - German NGO

Asked about Northern Lights, a spokesperson of the German economy and energy ministry (BMWi) told the 威力彩玩法 that the government 鈥渋n general does not comment on other country鈥檚 projects鈥 and referred to its own 鈥Climate Action Plan 2050鈥. In it, the German government says that the industrial sector is particularly challenging in terms of reducing emissions and that CCS 鈥渕ay be necessary鈥 in the long run.

Should Germany decide to reduce greenhouse gas emissions by 90-95 percent by 2050 鈥 the upper end of its current official goal corridor 鈥 CCS 鈥渨ill very likely be necessary, for example to reduce unavoidable industry emissions,鈥 agrees Jessica Strefler, researcher at The Potsdam Institute for Climate Impact Research (PIK).

For the CCS technology to be available in time and sufficient scope, it has to be developed now, says Strefler. 鈥淭his makes the Norwegian project an important step,鈥 she told the 威力彩玩法.

Capturing CO2 at Klemetsrud combined heat and power [CHP] waste-to-energy plant could be part of Norway's large-scale CCS demonstration project. Photo - Julian Wettengel 威力彩玩法 2018.

For Erika Bellmann, climate and energy expert at the environmental NGO WWF, the basic idea of a CCS project in Norway is 鈥渘ot wrong鈥, and she calls for a nuanced view. CCS as a way to reach climate targets 鈥渟hould not be demonised鈥. There are reasonable applications for the technology, but there are limits in scale.

If one assumes a 鈥渞easonable climate policy including the introduction of low-carbon processes for industry鈥, Norway鈥檚 plans might be 鈥渂igger than necessary鈥, says Bellmann. 鈥淚t鈥檚 an extremely large-scale project with lots of planned infrastructure, and we鈥檙e not sure if the project鈥檚 scale is suitable for the amount of remaining emissions in Europe.鈥

Bellmann also warns of lock-in effects: 鈥淥nce you鈥檝e built CO鈧 pipelines to Norway, you will want to fill them, and not only for the next ten years.鈥 From an economic point of view, Europe would basically 鈥渃ommit to producing carbon emissions鈥 if investors decided to participate in such a capital-intensive and long-lasting endeavour.

Doubts about public acceptance in Germany

Whether or not the German public would accept sending domestic emissions abroad is yet another issue, and could complicate Norway鈥檚 search for investors. 鈥淲e have found it difficult to bring it into the discussion in Germany,鈥 says Equinor鈥檚 Anfinnsen.

鈥淎t the moment, CCS is off-limits in Germany,鈥 Bellmann told the 威力彩玩法. After strong public opposition, which gives federal states a veto right regarding carbon storage on their land. According to Bellmann, the debate leading up to the technology鈥檚 earlier rejection was misguided. 鈥淚t did not centre on small amounts of residual emissions in industry, but was essentially about saving coal-fired power generation and the fossil energy industry. That led to many misgivings which cannot be dispelled overnight.鈥

For citizens to accept Norway as an alternative to carbon storage projects within Germany, a certain 鈥渙ut-of-sight, out-of-mind attitude鈥 would have to prevail. That this would happen is doubtful, says Bellmann. 鈥淐itizens here don鈥檛 only campaign for sustainable development in Germany, but also beyond national borders. Many would not accept simply pushing the problem to a neighbouring country.鈥

Other countries鈥 openness to supporting the CCS project depends on several factors, not least their own energy mix. Sweden鈥檚 power supply , and there has been little discussion about CCS, as attempts to reduce carbon emissions focus largely on the transport sector. In 2014, Swedish energy giant Vattenfall after R&D budget cuts.

Other neighbours seem like the perfect match for Norway. Implementing CCS technology in Finland requires that the captured carbon dioxide is transported abroad for storage, because no geological formations suitable for long-term storage have been found in Finland, .

In Denmark, CCS pilot projects from the population, so the Danish government the onshore CO鈧 storage in Denmark at the moment 鈥 awaiting positive results from experiences abroad, writes the Global CCS Institute. However, there are .

The Norwegian population, meanwhile, has voiced little opposition, likely also because the carbon would not be stored under inhabited land.

鈥淧ublic opinion on CCS is quite different in Norway,鈥 says oil and energy minister S酶viknes with a smile. 鈥淲e have the storage facility far out in the North Sea below seabed and we have 20 years of experience storing CO鈧. It鈥檚 not controversial.鈥

This article was made possible through a 2-day press tour organised by the Norwegian Embassy in Berlin in June 2018. The 威力彩玩法 paid for its own flights and accommodation.

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