– The then Minister of Petroleum and Energy Tina Bru (H) said that this is the biggest climate project of the Norwegian industry. When “Longship” is granted Last fall.
The project involves the capture and storage of carbon at the Norsem Cement plant in Porsche, and may also be funded by the Fortamin waste incineration plant at Clemetrod in Oslo. In addition, the traffic and warehouse solution at Øygarden has northern lights.
Now the bill for the Norsem project seems to be rising significantly.
In the government’s proposal for changes in the state budget for 2022, we can read the following:
On 25 October 2021, the Ministry of Petroleum and Energy received updated cost estimates for the CO₂ capture project from Norsem. The updated cost estimates are expected to be higher than Norsem’s maximum budget in the grant agreement between the state and Norsem.
The new estimate for expected investment costs (P50) has been increased from NOK 912 million to NOK 4146 million.
Frp: – Reminiscent of the crash landing at Monstot
The Progressive Party has long been skeptical of the billionaire “Longship” plan.
– The one billion spending gap already shows that the project is at significant risk. It begins to remind me of the crash landing at Mongstad, Frp’s vice president Kettle Solwick-Olson tells the NRK.
He also mentions the Stoltenberg government’s failed “moon landing” and carbon capture and storage at a gas power plant in Monstot.
Project Abandoned After great expense.
– Isn’t it a little early to draw the Monstot card? After all, there’s a little more excitement around these projects, isn’t there?
– Both areas are about creating a valuable plan in which the state will take the main risk while the others will be reversed. We should at least heed the warnings that this project is off to a bad start.
– Norway has a wealth of oil and gas. If so, aren’t we responsible for cleaning up the climate and taking risks in projects like this?
– I think it would be good for Norway to get involved in developing new technology, reducing emissions and improving energy balance in the world. No one objected to it. What we are criticizing is when politicians spend a huge amount of money and choose the technology that carries the greatest risk.
Corona, electricity and rising prices
Budget documents state that there are a number of reasons why estimated costs have now increased. Cosnova and Norsem highlight:
- Increased market prices
- Increased costs as a result of infections
- Project solutions for technical solutions and infrastructure
- Increased demand for project follow-up (systems and staff)
- Unexpected discoveries regarding the foundation and preparation for demolition of older buildings
- Higher capacity requirements for power supply
- The plan requires additional arrangements for future risk
The Ministry of Petroleum and Energy and Gassnova are now reviewing the excess documents and assessing the risk of multiple cost gaps.
Must agree to the solution
In the Lanskip agreement, the government has undertaken to take up the bulk of the bill, up to a certain amount.
The parties now have to talk to each other as the Norcem area is expected to exceed the maximum amount in the grant agreement with the state. Or as the government itself writes:
Until the parties agree to proceed, or until one party finances the completion alone, the plan will be put on hold and each party will bear its own cost.
Only the costs for the Norsem area have cracked. For traffic and warehouse area north lights, no change.
Sorting’s decision on the high-cost framework for the entire Longskip, including Norcem Crack, was not violated. The government’s agreement with the Norsem area does not now appear to cover that part of the bill.
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