NOX fund in Norway - funding to be used 100% for reduction of NOX!
30.06 2008
In 2007 the Norwegian government introduced a NOX tax of 15 Norwegian kroner (NOK) per kg NOX emitted, adding up to above 1500 mill NOK annually. Since the introduction of the NOX tax the employee organization NHO and 14 of its member organizations have negotiated with the Norwegian authorities to reduce the tax to 4 NOK/kg NOX for onshore industry and maritime sector and 11 NOK/kg NOX for offshore sector, adding up to in the range of 500 mill NOK annually. The difference is that the collected sum of money by the NOX fund will be used for subsidizing cost effective NOX projects to obtain the goal of reducing the NOX emissions with 30,000 tons within 2011. It is estimated that approx 80% of the reduction will come from maritime projects onboard vessels.
By signing with the NOX fund reducing the payment from 15 to 4 (11) NOK/kg NOX, the members are committed to investigate investment required to reduce NOX and to report that back to the board of the NOX fund. The board of the NOX fund will pick the most cost effective NOX reduction projects, assisted by DnV.
The incentive given is 90% of the investment if the application is planned for a start up within quarter 1, 2009. If the planned start up of the NOX reduction project is planned within end of 2011, the project will receive 80% incentive. The NOX fund will also support operational cost such as urea for the SCR reactor. The incentive for urea is 2 NOK per kg urea used.
It will be very interesting to follow the result of this industry initiative to take own responsibility for the NOX reduction in the magnitude of 30,000 tons. If this is a success it will be a good example of industrial collaboration and responsibility to reduce emissions, having the authorities as a supportive passenger! But if no success it is obvious that the Norwegian government will claim that they are the best “instrument” to reduce emissions to air. Let us all show that the industry can make significant reductions by themselves!
Good luck with this NHO initiative!