European competition regulators have okayed the Norwegian government’s financial support for project’s aimed at getting full-scale carbon capture and storage (CCS) infrastructure in place at the Mongstad refinery north of coastal city Bergen.

The nod opens the way for StatoilHydro’s 20 percent interest in the carbon capture work.

A test facility will screen technology ahead of a planned full-scale roll out in 2014. The site is already part of European research on CCS.

The Norwegians were allowed up to 80 percent governmental finance for the endeavour, deemed a potential new area of business by Brussels and therefore okay under competition strictures.

Dong Energy and Shell are among the energy companies expected to help finance the work of a number of suppliers after new investment commitments by year-end 2008.

The Test Centre Mongstad will test post-combustion carbon capture technologies on emissions from two different sources: a gas-fired combined heat and power plant under construction and an oil refinery cracker at the Mongstad site. The TCM will start up in 2010 and operate for five years.

“For the purpose of testing out such technologies on an industrial scale, the Authority has concluded that the State’s support is necessary for the project to be brought about,” a statement from Brussels's Competition Bureau said.

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Tags: CCS