StatoilHydro, ONGC to look at carbon capture and storage

Stavanger, Norway-based StatoilHydro (NYSE: STO) has partnered up with Dehradun, India's state-owned Oil & Natural Gas Corp. to develop carbon capture and storage and other environmentally friendly projects in India.

Oil & Natural Gas Corp., or ONGC, accounts for the bulk of domestic supply in India, operating both onshore and offshore.

"The agreement is an excellent start for developing environmental projects and technology transfers," said Alexandra Bech Gjørv, Sr. VP of new energy at StatoilHydro.

The Norwegian firm said the cooperation could result in carbon dioxide emissions reduction projects as well as the promotion of energy efficiency and growing use of renewable energy under the mechanisms of the Kyoto Protocol.

The Kyoto Protocol's clean development mechanism, or CDM, offers credits to investors in greenhouse gas-reducing projects in developing countries that can be used to offset emissions elsewhere.

"India's energy sector is growing fast and we're excited to contribute with our CCS and CDM competence in the cooperation with ONGC," said Bech Gjørv.

StatoilHydro already stores carbon dioxide beneath the seabed at its Sleipner gas field in the North Sea, and plans to set up a CCS pilot plant at its Mongstad refinery on Norway's west coast in 2011.

Earlier this week, Calgary, Alberta-based Enbridge (NYSE: ENB) announced plans to lead a group of 19 energy companies in a Canadian carbon capture and storage project (see FutureGen migrates north?).