StatoilHydro participates in a national agreement on NOx (nitrogen oxides) reduction by establishing a Norwegian industry NOx-fund.
The Fund will fund the most cost effective NOx reducing measures in order for Norway to fulfil the Gothenburg protocol obligations within the end of 2010.
Norway signed the Gothenburg protocol in 1999. This is an international agreement to reduce acid rain in Europe. It includes several components, but nitrogen oxides might be the most challenging compound to reduce in Norway. Norway's is committed to limit emission to 156 000 tonnes per year NOx within the end of 2010. Without any measures Norway's emission might reach 193 000 tonnes.
NOx is generated in the combustion chambers in engines and turbines where nitrogen and oxygen are linked at high temperature. Emission reductions is not a simple task. The common belief is that modification of ship engines have the largest potential by by reducing the temperature inside the combustion chamber, and possibly also reducing the fuel consumption. There is also possible other mitigation options. StatoilHydro is participating in an industry joint venture, a NOx-fund, which has the potential of several NOx reducing measures on a national level.
A NOx - tax was implemented in Norway as from January 1st 2007 with the purpose to fulfil the Gothenburg protocol. We, however, believe that reaching the protocol solely by taxation, might be difficult. Instead, StatoilHydro together with the rest of the Norwegian industry entered into an agreement with the Ministry to pay into a NOx-fund instead of paying the NOx-tax. They are going to finance the best and most cost efficient abatement measures. StatoilHydro will be a significant contributor to the fund.
The cost of Nox abatement at offshore installations are much higher than most other measures. Statoil and the other operators at the NCS found it more efficient and beneficial for the society to contribute to the NOx-fund to enable the most cost efficient measures to be deployed quickly.
