Gas-fired power postponed

February 8, 2002, 13:30 CET

The board of Norway’s Naturkraft company has resolved to ask the Ministry of Petroleum and Energy to extend its licence for building two gas-fired power stations in western Norway.

One reason for this application is that it will allow the units at Kårstø north of Stavanger and Kollsnes near Bergen to be integrated in other installations planned at these sites.

That will improve energy efficiency, reduce emissions and improve project economics, says Gunnar Myrvang.

He is one of Statoil’s two directors in Naturkraft, which is owned one-third each by the group, Norsk Hydro and state power company Statkraft.

At Kårstø, Naturkraft wants to study whether its planned power station can be coordinated with receiving facilities due to be built for gas from Kristin and Mikkel in the Norwegian Sea.

And plans at Kollsnes call for new compressors to be installed in connection with gas exports.

Mr Myrvang also says that Naturkraft needs more time to develop a project which is good enough in terms of the profitability requirements set by its owners.

As a result, the company will be unable to complete the gas-fired power stations before its present licence expires in 2004. This permit is based on today’s technology.

“We’ve noted that the government wants to develop ‘carbon-dioxide-free’ gas-fired power stations,” says Mr Myrvang. “But we need a clarification of the government’s contribution before deciding on this.”

He expects that the stations can be operational two-three years after an investment decision has been taken.