Work on Statoil's Mongstad energy project (EVM) at Mongstad near Bergen started today, 16 January. Plans call for a combined heat and power (CHP) station to come online in 2010.
The construction phase starts with clearing and levelling of the 18,000-square-metre site where the CHP station will be situated.
The EVM project comprises the laying of a new gas pipeline from the Kollsnes gas processing plant near Bergen and construction of the CHP station. Additionally, tie-in work between the CHP station and the present Mongstad refinery will take place.
"We are very pleased that construction work in connection with EVM is now underway," says Bjørn Kåre Viken, vice president for Statoil Mongstad.
"EVM will be strategically important as a large-scale environmental and industrial project. It will improve the power grid balance in the Bergen region.
By utilising heat from the CHP station, Statoil will in addition achieve considerably improved energy efficiency and better profitability at the Mongstad refinery."
Danish Oil and Natural Gas (Dong) Energy will construct, own and operate the station. The agreement between Statoil and Dong Energy is valid for 20 years.
Development of technological and commercial solutions for managing carbon dioxide (CO2) at Mongstad will take place at the same time as EVM gets under way.
Carbon management will be developed in two stages. The first comprises a facility capable of capturing 100,000 tonnes of CO2 per year. Secondly, a large-scale carbon capture plant will be developed.
The Ministry of Petroleum and Energy and Statoil have signed a collaboration agreement to develop technology which will provide cost-effective and good long-term solutions.
The main financial and operational responsibility for capture, transport and storage of CO2 lies with the Norwegian state.