- Investment for the projects is roughly NOK 8.5 billion, with Statoil's share around NOK 4 billion.
- The Mongstad power station will be ready in 2008, costing about NOK 3 billion.
- Tjeldbergodden's methanol output will increase by 35%, with a gas-fired power station generating 860 megawatts.
- Final investment decisions are expected in the first half of 2006.
Investment and Project Overview
Statoil plans to build power stations at its Mongstad and Tjeldbergodden facilities and expand methanol production. The total investment for these projects is approximately NOK 8.5 billion, with Statoil's share around NOK 4 billion. These initiatives aim to enhance energy efficiency and reduce carbon emissions.
Mongstad Development
At Mongstad, a combined heat and power station will be constructed to improve the refinery's competitive position by providing efficient energy supplies. The facility will supply power and heat to the refinery, the Troll A platform, and the gas processing plant at Kollsnes. The power station, costing about NOK 3 billion, is expected to be operational by 2008 and will have an electricity output of approximately 280 megawatts.
Tjeldbergodden Expansion
The Tjeldbergodden project involves increasing methanol production by 35%, raising annual output from nearly 900,000 tonnes to around 1.2 million tonnes. A gas-fired power station with a capacity of about 860 megawatts will be built, generating roughly seven terawatt-hours per year. This will help meet the plant's increased power needs and supply electricity to the grid in mid-Norway. The investment for this project is estimated at NOK 5.5 billion, with NOK 1.3 billion allocated for the methanol plant expansion.
Regulatory and Environmental Considerations
Statoil has applied for necessary licenses and emission permits from the Norwegian Water Resources and Electricity Directorate (NVE) and the Norwegian Pollution Control Authority (SFT). The projects are expected to contribute to a global reduction in carbon emissions by avoiding imports from more polluting sources.
Timeline and Decision
A final investment decision for both projects will be made by the Statoil board after clarifying license terms and other conditions, likely in the first half of 2006.
