Mongstad power licence sought

June 30, 2005, 12:00 CEST

An application to build a combined heat and power station at the Mongstad refinery near Bergen is being submitted by Statoil to the Norwegian Water Resources and Energy Directorate (NVE) on 1 July.

A revised request for a renewed emission permit covering Mongstad, including the new power station, will also be sent to the Norwegian Pollution Control Authority (SFT).

“It’s a year now since we launched plans for a facility at Mongstad to supply heat to the refinery and electricity to the Troll field in the North Sea,” says Einar Strømsvåg, senior vice president for Statoil’s manufacturing business cluster.

“We’re still in the process of developing the project so that we have a good basis for taking a final investment decision next year.

“Applying for a licence and an emission permit forms part of this ongoing work.”

Advance notification with proposals on an impact assessment programme for the Mongstad energy utility were submitted to the NVE on 30 June 2004 and approved this spring.

The heat and power station will be fuelled by Troll gas piped from the Kollsnes processing plant further south and by surplus gas from the refinery.

This project is being developed as part of efforts to strengthen, continue developing and enhance energy efficiency at Mongstad, and also to ensure long-term electricity supplies for the Troll field – which faces growing power requirements in coming years.

Mr Strømsvåg emphasises that the economics of the scheme are demanding, and that Statoil must accordingly develop a robust project.

The group also needs the Norwegian government to give it the same frame conditions enjoyed by industry in the rest of Europe.

Elsam, Denmark’s largest heat and electricity generator, will be sole owner of the power station and responsible for its construction if the project goes ahead.

Statoil will be in charge of conversion work at the refinery and of laying the gas pipeline from Kollsnes to Mongstad.

The planned station will produce heat corresponding to 350 megawatts (MW), while its power generating capacity will be about 280 MW – giving roughly 2.2 terawatt-hours (TWh) per year.

The facility could be completed around the end of 2008.

The provisional investment estimate for the project is roughly NOK 4 billion.