Project: Halten CO2 Project (Draugen)
Company/Alliance: Statoil / Shell.
Location: Tjeldbergodden, Norway
Size: 860 MW, 2.5 million tons of CO2 per year
Capture Technology: Post-combustion
CO2 Fate: Cancelled after EOR was not feasible
Previously: 2-2.5 million tons of CO2 was going to be used for EOR in Draugen oil field.
Timing: Feasibility study (2006), concept selection (2007), and EOR and project cancelled (2007).
Previously: Power plant start-up (2010-2011), and first supply of CO2 to Draugen (2011-2012)
Previously estimated to cost NOK 8-10 billion (US$1.2-1.5 billion) with NOK 4-4.5 billion (US$700- 780 million) for building the power plant and similar amounts for building the CO2 capture system and pipeline. It would have been the first project to inject captured CO2 offshore for EOR.
Thorough studies on Draugen showed that the use of CO2 for EOR would produce disappointingly low extra volumes of oil. In addition, high alteration costs would mean that it would not be profitable to use CO2 for increased oil recovery. The project's mandate was changed in summer 2007. This was determined by a $67.7 million feasibility study that it is not commercially viable, although the plan is technically feasible.
The project then evaluated the possibility of building a gas-fired power plant with carbon capture and storage (CCS), but it concluded by terminating the project towards the end of 2007.
The reason for this decision was the poor profitability of the power plant even without carbon capture, and the need for substantial support from the authorities to finance carbon capture and storage.
Project Link: Halten CO2 Project (Draugen)
Other Sources and Press Release:
Draugen shutting down (June 2007)
Draugen abandoned because uneconomical (June 2007)
Statoil, Shell Set World's Biggest CO2 Seabed Plan (March 2006)