Norway to shut touted Statoil carbon capture project

|About: Statoil ASA (STO)|By:, SA News Editor

Norway is shutting down the Statoil-operated (STO -1.6%) Mongstad full-scale CO2 capture project, ending the highly touted environmental project whose risks are now seen as too big to continue.

STO says it hasn't been able to solve the technical challenges with installing a huge, complex capture plant at a refinery and gas heat and power plant in full operation.

The uncertainty about the project also increased because of the struggling western European refinery business, which has hurt margins at the Mongstad refinery, the government says.

The carbon capture technology is somewhat similar to the kind new U.S. rules will demand in new coal plants.