courtesy Aker Kvaerner

Norway could spend NOK1.13. billion ($205 million) on R&D to advance carbon capture, transport and storage, or CCS, if the governing coalition’s proposed 2008 budget gains royal assent this autumn.

Oil companies Shell and Statoil (now StatoilHydro) pulled out of a large-scale carbon-injection project earlier this year, but funds for CCS continue to “incubate” suppliers of technology under a national scheme.

Under program, recently resigned oil minister Odd Roger Enoksen set up a project team to begin the pre-engineering, planning and preparation of the capture facility at the Kårstø gas-fired power plant. The work is worth NOK165 million in 2008.

Last year, the state and its energy champion Statoil signed an agreement to establish CCS at the heat and power plant at Mongstad in southwest Norway. Mongstad was designated a European carbon-dioxide Test Centre for bringing down CCS costs, and NOK 400 million ($73.6 million) is proposed for the work in 2008.

Meanwhile, infrastructure caretaker Gassco could get NOK370 million next year to begin solving the problems of carbon transport by pipeline.