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Celsio: Go-ahead for Carbon Capture project

Today, the Minister of Petroleum and Energy Terje Aasland signed the agreement that ensures the realization of full-scale carbon capture at the waste-to-energy plant of Hafslund Oslo Celsio (Celsio) at Klemetsrud in Oslo. This means that the Norwegian state, the City of Oslo and Celsio's owners; Hafslund Eco, Infranode and HitecVision, now realize the world's first carbon capture facility for a waste-to-energy plant.

“With today's signing, the government, the City of Oslo and Celsio will together realize the world's first carbon capture plant for waste incineration. Oslo will thus be able to achieve the city's ambitious climate goals and demonstrate how to cut CO2 emissions from responsible waste management”, said a proud CCS director Jannicke Gerner Bjerkås.

Celsio's waste-to-energy plant is the largest CO2 emission point in Oslo, accounting for 17 per cent of the city’s CO2 emissions. Without carbon capture, it would not be possible to achieve the City’s ambitious climate goals.

“I want to thank everyone who has contributed to us arriving at today's decision. It is because of their efforts that we are here today. We are now ready to start construction at Klemetsrud, together with our partners. Detailed design starts now, and already in August the first physical work will start. I look forward to inviting you to the official opening in 2026 of Oslo's most important climate measure,” said Celsio’s acting CEO Knut Inderhaug.

“The realization of the project means a lot for our city and for the climate. In addition, the project is an important contribution to creating a new green industry. The project contributes to significant knowledge sharing at home and abroad, both technology development and supplier development,” concluded Inderhaug.

Today's signing will also strengthen Longship, the Norwegian state's CCS project, and demonstrate for other waste incineration plants in Norway and Europe how major emission cuts can be implemented through CCS (Carbon Capture and Storage). Through its carbon capture facilities in Oslo and Brevik, Longship will demonstrate that the Northern Lights transport and storage infrastructure is ready to handle captured CO2 from major industrial emission points in Europe. The realization of the two capture projects will provide a much greater robustness in the entire value chain, and will also result in a lower cost per unit of stored CO2.

Public grants

The total cost of realizing carbon capture at Celsio's waste incineration plant at Klemetsrud is set at NOK 9.1 billion in the agreement. Through its grant, the Norwegian state contributes NOK 3.08 billion over ten years. This includes operating support, but does not include transportation and storage at Northern Lights. The City of Oslo invests NOK 2.1 billion directly, through preference shares in Hafslund Oslo Celsio. Celsio itself invests NOK 3.92 billion in what is hoped may be the first of many carbon capture facilities at home and abroad.

The emergence of carbon capture projects

In recent years, a number of projects have been initiated in Norway and abroad for carbon capture, some also including storage. In Europe, there is increasing acceptance of waste-to-energy with carbon capture. Some Scandinavian cities are in the planning phase for similar projects, and throughout Europe there are an estimated 500 facilities similar to the one at Klemetsrud, with further growth expected as a consequence of a forthcoming EU ban on landfilling.

Final investment decision

On Tuesday 28 June, the board of Celsio made the final investment decision for the realization of the carbon capture project at Klemetsrud in Oslo. The board decision was the final company-internal decision before the agreement with the government could come into place.