1 XVI Power of attorney to enter into agreements and incur obligations for the state for Longship (Carbon capture and storage)

The Storting agrees that the Ministry of Petroleum and Energy in 2021 may:

• 1. enter into agreements with Norcem and Northern Lights to establish and operate their parts of Longship (Carbon capture and storage) within a total cost frame of a. 14 700 mill. 2021 NOK in investments (CAPEX) b. 6 600 mill. 2021 NOK in operating expenses (OPEX) for up to ten years.

• 2. enter into agreements where the expenses are to be shared between the state, Norcem and Northern Lights in accordance with the principles described in more detail in Chapter 1840 Carbon capture and storage, item 72 Longship – Carbon capture and storage and in Meld. St. 33 (2019–2020) Report to the Storting (white paper) Longship – Carbon capture and storage, where the share of the state as a maximum constitutes up to

  • a. 11 100 mill. 2021 NOK in investments (CAPEX)

  • b. 5 100 mill. 2021 NOK in operating expenses (OPEX) for up to ten years with the addition of potential additional funding for captured CO₂ that is not subject to the European Emissions Trading System, equivalent to the allowance price per tonne of CO₂ excluding any potential carbon tax per tonne of CO₂.

• 3. enter into an agreement with Fortum Oslo Varme conditional on sufficient own funding and funding from the EU or other sources in accordance with the principles described in more detail in Chapter 1840 Carbon capture and storage, item 72 Longship – Carbon capture and storage and in Meld. St. 33 (2019–2020) Report to the Storting (white paper) Longship – Carbon capture and storage, where the share of the state as a maximum may constitute up to

  • a. 2 000 mill. 2021 NOK in investments (CAPEX)

  • b. 1 000 mill. 2021 NOK in operating expenses (OPEX) for up to ten years with the addition of a potential additional funding for captured CO₂ that is not subject to the European Emissions Trading System, equivalent to the allowance per tonne of CO₂ excluding any potential carbon tax per tonne of CO₂.

• 4. enter into an agreement with Northern Lights to incur obligations for the state for costs in the event of CO₂ emissions of up to 80 per cent of the allowance price up to and including 40 EUR per tonne and 100 per cent of the part of the allowance price that exceeds 40 EUR per tonne of CO₂, for the proportionate share of captured CO₂ in the funding period of up to ten years from Norcem and, if applicable, Fortum Oslo Varme of the total amount of stored CO₂ in the storage.

• 5. enter into an agreement with Northern Lights to incur obligations for the state in the funding period of up to ten years for up to 80 per cent of the costs of preventive and corrective measures for the agreed annual storage volume of 1.5 million tonnes of total storage capacity for CO₂, in the event of extraordinary events with the risk of CO₂ leakage from the storage or damage to the environment or life and health.

• 6. enter into an agreement with Northern Lights to incur obligations for the state after cessation of operations of the CO₂ storage, for the proportionate share of captured CO₂ during the funding period of up to ten years from Norcem and, if applicable, Fortum Oslo Varme of the total amount of stored CO₂ in the storage, with up to 80 per cent of the costs of

  • a. any preventive and corrective measures in the event of extraordinary events with the risk of CO₂ leakage from the storage or damage to the environment or life and health

  • b. cessation, monitoring and removal after closure of the storage.

Petition Resolution

• 18. The Storting charges the Government to initiate negotiations to enter into the transport and storage partnership with state ownership shares in the event of a possible expansion of the infrastructure to more than 1.5 mill. tonnes of CO₂ per year.

• 19. The Storting requests the Government to report to the Storting on how the state may take part of the income from future exploitation permits for CO₂ storage. The assessment shall include taxation and alternatives for state ownerships, including the SDFI model.

• 20. The Storting requests the Government to report to the Storting how Longship is organised, who owns the technology that is developed and demonstrated, and how to facilitate for the society to get the most out of the technology being developed and demonstrated through state funding.

• 21. The Storting charges the Government to facilitate so that as much as possible of the technology that is being developed and demonstrated in Longship and other learnings from the project will be utilised in Norway.

• 22. The Storting requests the Government to closely monitor the cost and risk control in Longship, in such a way that potential significant negative deviations in the projects are identified early, and that the Government utilises the agreement's room for manoeuvre to keep the state's costs as low as possible.