The Norwegian Government has released funding and tax incentives to businesses aiming to develop commercially viable carbon capture and storage technologies for use in the maritime sector
Among those receiving funds are Finland-headquartered marine and energy technology manufacturer Wärtsilä and Norwegian company TECO 2030, which manufactures green technology for the maritime sector.
Norway has promised Nkr111M (US$12.9M) in funding to the LINCCS (linking carbon capture and storage) consortium Wärtsilä is a part of.
The Norwegian Government’s Green Platform Initiative awarded the funds to the LINCCS project, backing the project’s stated goals of reducing costs for new carbon storage facilities by 70% and advancing the development of carbon capture technologies, generally.
Wärtsilä has committed to developing maritime carbon capture and storage (CCS) technologies by participating in the LINCCS consortium, and the company is also building a 1-MW carbon capture and storage technology test plant as part of its test facility in Moss, Norway.
Wärtsilä is leading one of the LINCCS project’s ’work-streams’ to bring to market a maritime CCS solution with support from the Sustainable Energy Catapult Center and SINTEF Energy. This contribution will join wider, cross-industry CCS developments from project partners including Aker Solutions, Cognite, Aize, AGR, OpenGoSim, Wintershall Dea, Vår Energi, Lundin, Equinor and TotalEnergies, according to Wärtsilä.
"To support CCS technology development, Wärtsilä Exhaust Treatment will expand its engineering facility in Moss, Norway to develop, test and verify the CCS solutions. This will bring the technology to a maturity level where it can be piloted in full scale on a vessel," a statement from the company said.
TECO 2030 has been granted up to Nkr4M (US$463,000) in tax relief as indirect government support for developing solutions to capture and store CO2 from ship exhaust.
The support has been granted through the Research Council of Norway’s Skattefunn scheme, which is a tax deduction scheme designed to stimulate research and development activities by Norwegian companies. The project that has been granted tax relief involves the development and testing of onboard solutions that can capture more than 90% of the CO2 in ship exhaust. The tax relief granted to TECO 2030 under the Skattefunn scheme will cover 19% of the costs accrued in this project, up to about Nkr4M over the project period of two years.
In June 2021, TECO 2030 signed a memorandum of understanding with US-based gas technology group Chart Industries to jointly develop carbon capture equipment for ships.
The agreement will see the companies develop a carbon capture kit for ships using cryogenic carbon capture technology developed by SES, a firm acquired by Chart Industries in December 2020.
The SES technology separates the CO2 from the ships’ exhaust gases, resulting in a high-purity liquid CO2 product. The liquid CO2 is then stored on board in cryogenic storage tanks until the ship reaches port.
When offloaded from the ship, the CO2 can either be permanently stored in geological formations underground or be put to use in CO2 consuming industries in the agricultural, industrial, energy, and food and beverage sectors.
When fully developed, the carbon capture solution will become available as a key element in the TECO 2030 Future Funnel – a proprietary exhaust gas cleaning system developed by the company.
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