Today, StatoilHydro announced that it was cancelling the construction of the Tjeldbergodden integrated 860 MW power plant in Norway because of economics and regulatory considerations related to CO2 purification and subsequent storage in the North Sea.

The CO2 from the project was to be piped offshore for use in the Draugen and Heidrun fields. Speaking at a meeting of the Norwegian Oil Industry Association in Molde in May 2007, Kai Bjarne Lima, the Halten CO2 project manager, stated that “the Halten project can lead to a paradigm shift in the capture and storage of CO2, along with the use of CO2 for enhanced oil recovery.” It indeed appears that Halten has caused a paradigm shift -- unfortunately, it is a shift in the wrong direction.