🇳🇴 Norway looking to fund CDR with up to €1.7b

⚡ Enova, the Norwegian state energy agency, is looking to launch NOACCS (Norwegian Auction Scheme for Carbon Capture and Storage): a competitive auction scheme for carbon capture and permanent geological storage, covering everything from waste incineration and biogas to direct air capture.

THE KEY INFO:

🏛️The budget ceiling is €1.7bn but nothing is actually allocated yet. Real funding depends on annual government decisions

🗓️ NOACCS is proposed to run between 2027 and 2032

🔎 It's a reverse auction: lowest €/tonne CO₂ permanently stored wins, creating genuine price discovery in a market that has none today

💰 DACCS is in scope but the [pretty high] €340/tonne hard price cap cuts off roughly half of DAC's realistic cost range

⏬ A minimum of 5,000 tonnes CO₂/year must be stored to qualify. Again, likely too high for most DACCS projects

💸 If carbon markets improve after a grant is awarded, Enova claws back support krone-for-krone automatically

🇪🇺 EU ETS pricing is explicitly named as insufficient to trigger CCS investment. 

🧐 My take: this is yet another great example that governments are moving and putting money on the table to fund the scale up of CDR. What I love about this specific scheme is: 

1️⃣ Its long-term horizon (projects could be funded well into the 2040s)

2️⃣ Its broad technological choice, from BioCCS, to BECCS, to even DACCS

3️⃣ Its focus on revenue stacking and co-claiming, in line with current thinking in Europe, e.g. CRCF

👉 A consultation is currently open in case you want to give input: https://lnkd.in/dbSHifah

❓ For all of those operating in Norway or looking to do so: what is your take? Is this a sufficiently attractive incentive to open up shop in Norway?

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