Carbon capture project resumes at waste-to-energy plant in Oslo

Norwegian district heating firm Hafslund Celsio will resume the carbon capture project at the Klemetsrud waste-to-energy plant in Oslo.

The facility, being delivered in partnership with Aker Solutions and SLB Capturi, will capture 90% of all CO2 in the flue gas from the waste-to-energy plant.

This equates to 350,000 metric tonnes of CO2 that will be captured annually, with approximately 50% resulting in permanent carbon removal from the atmosphere.

CO2 transport and storage developer Northern Lights will collect the captured CO2 and transport it to their terminal in Øygarden near Bergen. From there, the CO2 will be permanently stored below the seabed in the North Sea.

The facility is expected to be operational by the third quarter of 2029 and according to Martin S. Lundby, chief executive officer at Hafslund Celsio, once complete, will cut nearly 20% of Oslo's remaining fossil emissions.

Lundby commented in a statement: “This is an important milestone. I am proud that we are now ready to resume the realization of one of Norway's largest and most important climate and industrial projects, which is also critical for ensuring the long-term competitiveness of waste incineration and district heating in Oslo.

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Lundby added: "As part of the Norwegian government's Longship demonstration project, the Norwegian government, Oslo municipality, and Hafslund Celsio are working together to realize one of the world's first full-scale carbon capture facilities for waste-to-energy..."

The NOK8.3 billion ($700 million) project will receive Capex support from the Norwegian government to the tune of NOK2.5 billion ($200 million). Oslo municipality will invest NOK2.6 billion directly through preference shares in Hafslund Celsio, while Hafslund Celsio will invest NOK4.3 billion ($380 million).

The project was initially delayed due to high project costs. On 26 April 2023, the carbon capture project entered a cost-reduction phase, which saw costs reduced by approximately NOK1 billion ($89 million). The Norwegian Parliament only approved the government's proposal for an adjusted state support agreement on 18 December 2024.

"I am pleased that this climate project is back on track. CO2 capture is necessary to reduce emissions from this type of facility. A successful project at Klemetsrud will demonstrate the value of CO2 capture from waste incineration both nationally and internationally," said minister of Energy Terje Aasland.

The Klemetsrud waste-to-energy plant could become a source of revenue for Hafslund Celsio, as permanently removing CO2 from the carbon cycle will create the opportunity to sell carbon removal certificates in the voluntary carbon removal market (VCM).

According to Hafslund Celsio, the waste incineration plant at Klemetsrud is Oslo’s largest emission point and without carbon capture at the plant, it will not be possible for the City of Oslo to achieve its climate targets.

Furthermore, the company states it will be the first in the world to construct full-scale carbon capture at an operational waste incineration plant.

Article updated 29 January 2025