Skip to main content

NORWEGIAN GOVERNMENT SUPPORTS TECO 2030 CCS PROJECT

NORWEGIAN GOVERNMENT SUPPORTS TECO 2030 CCS PROJECT

Thursday, September 9, 2021 

Norwegian company Teco 2030 has been granted tax relief, amounting to a maximum credit of NOK 4m, as indirect government support for developing carbon capture and storage (CCS) solutions that will capture CO₂ in ships' exhaust and store it until vessels reach port.

The support has been granted through the Research Council of Norway’s Skattefunn scheme, which is a tax deduction scheme designed to stimulate R&D activities in Norwegian companies. It provides indirect support in the form of tax deductions on costs related to implemented research and development activities.

Tore Enger, CEO Teco 2030 said: “We are currently in the process of developing technological solutions that will enable ships running on fossil fuels to reduce their emissions and become more climate-friendly by capturing the CO2 that they would otherwise emit with their exhaust gases. We are very pleased and thankful for the support we have now received from the Research Council of Norway to this end. The recognition of carbon capture as an emissions reduction technology for the maritime industry represents a milestone in our efforts."

The project that has been granted tax relief involves the development and testing of onboard solutions that can capture more than 90% of the CO2 in the ship exhaust. The tax relief granted under Skattefunn will cover 19% of the costs accrued in this project, up to about NOK 4m over the project period of two years.

Teco 2030 is developing carbon capture solutions for ships together with US technology company Chart Industries. The solutions will separate the CO2 from the ship’s exhaust gases and store it in liquid form until it can be offloaded when the ship has reached port. When offloaded, the CO2 can then either be permanently stored in geological formations underground or be put to beneficial use in CO2-consuming industries, such as the agricultural, industrial, energy, or food and beverage sectors.

CCS technology has the potential to reduce greenhouse gas emissions from the shipping industry by more than 30% by 2050, according to DNV’s Maritime Forecast to 2050. Teco 2030 is currently in the process of separating its carbon capture business unit into a separate fully-owned entity to be known as Teco 2030 Carbon Capture, based in Narvik in northern Norway.

In addition to carbon capture solutions for ships, the company is developing exhaust gas cleaning systems and hydrogen fuel cells for the maritime industry.

Reader Comments (0)

There are currently no comments on this article. Why not be the first and leave your thoughts below.

Leave Your Comment

Please keep your comment on topic, any inappropriate comments may be removed.

Return to index