Statoil has announced plans to shut down its combined heat and power (CHP) plant at Mongstad, Norway at the end of next year.
The decision to close the plant follows “several years of unprofitable operations”.
It was developed in 2010 to improve the energy efficiency at the Mongstad refinery and secure energy supply to industrial and other customers in the region and the continental shelf.
The plant has the capacity to produce 280MW of electricity and 350MW of heat, which is supplied to the oil refinery.
It also provides electricity to the Troll A platform and the gas processing plant at Kollsnes.
The Norwegian company said Statoil Refining Norway and the partners in the Troll license have agreed to end the existing gas agreement at the end of 2018.
In the two-year period, Statoil will look into “alternative sources for steam and solutions for safe and stable operations for the refinery”.
Grete Haaland, Senior Vice President for Asset Management in Marketing, Midstream and Processing at Statoil said: “The reason for this decision is that the CHP has had less utilisation than planned due to lower steam demand at Mongstad. This has resulted in severe operating loss and actions to adjust the activity are unavoidable.”
ELN previously visited the Technology Centre Mongstad, believed to be the world’s largest facility for testing and improving carbon capture.