Applications for Support

Undertakings that join the Environmental Agreement by signing the Participant Agreement may apply for support for measures to reduce NOx emissions. Support will be granted for investment costs as well as operating costs in connection with measures designed to reduce NOx emissions.

All enterprises obligated to pay NOx tax may join the Environmental Agreement, regardless of whether they are Norwegian or foreign owned or operated – all may join. Enterprises which have joined the Environmental Agreement and enterprises with process emissions may apply for support from the NOx Fund to investments and operating costs in accordance with the rules stipulated by the Board.

Projects that have already been granted state aid (through the NOxRED Programme or Enova) are not eligible to receive support from the NOx Fund.

Support rates for applications received in 2011
From 1.1.2011 the NOx Fund may grant the following support rates:

• New buildings and retrofitting gas propulsion
  Applications received in 2011 for new buildings or retrofitting to gas propulsion with implementation from 2011 and before the end of 2015 may receive up to 80 % support, maximum up to NOK 350 per kg NOx reduced. Measures already granted support under the Environmental Agreement 2008-2010 with implementation in 2011 will also get these support rates provided that the enterprise has joined the agreement for the period 2011-2017.
   
• Filling stations for gas
  The NOx Fund may support filling stations for gas as long as more than one gas supplier can supply the filling station with gas and as long as all interested buyers may purchase gas from the filling station. Applications will be handled on an individual basis.
   
• New and promising NOx reducing measures
  Applications the NOx Fund receives in 2011 which represent new and promising NOx reducing technologies may receive up to 80 % support, maximum up to NOK 225 per kg NOx reduced. The measures have to be implemented from 2011 and before the end of 2013. Applications already granted support under the Environmental Agreement 2008-2010 with implementation in 2011 will also get the new support rates provided that the enterprise has joined the agreement for the period 2011-2017.
  
  Up to 30 % of the granted support may be paid by the NOx Fund independent of actual NOx reduction. A list of such technologies will be posted on the NOx Fund’s homepage mid February 2011 and further updated.
   
• Catalytic reduction with the use of urea
  The NOx Fund may only grant support for catalytic reduction with the use of urea (SCR) where the use of such technologies is demanded by the client and where the client performs controls to make sure the SCR system is in use. Applications may receive up to 60 % support, maximum up to NOK 100 per kg NOx reduced. The NOx Fund requests all ship owners with a SCR system to install equipment to measure the urea consumption.
  
  Operating support for urea is maintained at NOK 2.50 per kg consumed. A SCR system with documented operation since installation may receive support for renewing the catalytic elements with up to 80 % support.
   
• Battery-powered propulsion of car and passenger ferries
  Applications the NOx Fund receives in 2011 with implementation from 2011 and before the end of 2015 may receive up to 80 % support, maximum up to NOK 350 per kg NOx reduced. Measures already granted support under the Environmental Agreement 2008-2010 with implementation in 2011 will also get these support rates provided that the enterprise has joined the agreement for the period 2011-2017.
   
• Gas in land based industry
  Applications the NOx Fund receives in 2011 with implementation from 2011 and before the end of 2015 may receive up to 80 % support, maximum up to NOK 225 per kg NOx reduced. Measures already granted support under the Environmental Agreement 2008-2010 with implementation in 2011 will also get these support rates provided that the enterprise has joined the agreement for the period 2011-2017.
   
• Engine modifications and retrofitting
  Applications the NOx Fund receives in 2011 with implementation from 2011 and before the end of 2013 may receive up to 80 % support, maximum up to NOK 225 per kg NOx reduced. Measures already granted support under the Environmental Agreement 2008-2010 with implementation in 2011 will also get these support rates provided that the enterprise has joined the agreement for the period 2011-2017.
   
• Other NOx reducing measures
  Applications the NOx Fund receives in 2011 with implementation from 2011 and before the end of 2013 may receive up to 80 % support, maximum up to NOK 225 per kg NOx reduced. Measures already granted support under the Environmental Agreement 2008-2010 with implementation in 2011 will also get these support rates provided that the enterprise has joined the agreement for the period 2011-2017.
   
• Measures implemented from 2008-2010
  Measures implemented from 2008-2010 may receive support corresponding to the old Environmental Agreement 2008-2010.
   
• Older measures and measures with NOx reduction as a positive side effect
  Measures implemented from 12. May 2006 and in 2007 together with measures where the NOx reduction is not the main reason for the implementation of the measure, but a positive side effect, may receive up to NOK 50 per kg NOx reduced.

Measures to be implemented in 2011 that has already been granted support
All measures implemented or with planned implementation in 2011, which have already been granted support, will get their conditions changed according to the support rates above from 1.1.2011 (not applicable for SCR measures already granted support with planned implementation in 2011) if the enterprise has joined the Environmental Agreement 2011-2017.

Payment of support
The support will be paid in Norwegian kroner (NOK) per kg NOx as measures in actual achieved reductions, where support is based on actual reduction in emissions subject to NOx tax and operations between installations on the Norwegian continental shelf. The financial support will be paid once the relevant measure has been implemented and its effect has been documented.

The following costs are included in the cost basis that is eligible to receive support from the NOx Fund:

• Projected costs in relation to the applied for measure.
• Purchase costs.
• Rebuilding/alteration costs.
• Measurements of emissions before and after measure have been implemented.

Loss of revenues during the implantation period, the so-called off-hire costs, is not covered, and shall not be included in the investment costs.

Application guidelines
The Business Sector’s NOx Fund has made a guide for applications for support describing the information necessary for the Fund to be able to process applications. The Fund has also made an application form which has to be filled in.

Emission measurements
The NOx Fund may grant support to measurements of NOx emissions in the following cases:

• Ships
  The NOx Fund may grant support to measurements of NOx emissions from ships affiliated to the Fund implemented in 2011 and 2012 with up to NOK 60 000 per ship, with a maximum of up to 80 % of the costs. 
  
  The support will be paid in Norwegian kroner (NOK) per kg NOx once the measurement report is submitted and documented.
   
• Movable rigs
  The NOx Fund may grant support to measurements of NOx emissions implemented in 2011 and 2012 on all movable rigs – also those not affiliated to the Fund – with up to NOK 100 000 per rig, with a maximum of up to 80 % of the costs.
  
  The support will be paid in Norwegian kroner (NOK) per kg NOx once the measurement report is submitted and documented, together with information regarding fuel consumption in 2008, 2009 and 2010 for exploration drilling, production drilling and transport of the rig as a ship between drilling operations at sea or on the continental shelf respectively.
   
• Measurement in relation to support to measure
  The NOx Fund grants financial support to measurements of NOx emission in relation to applications for support to NOx reducing measures. The measurement costs before and after implementation of measures may be included in the overall investment amount.

The measurements must be carried out by an accredited firm or a competent party approved by the Norwegian Maritime Directorate.

Operating support
Support will be granted to added costs resulting directly from the measure, for instance costs related to the purchase of urea. Support will only be paid out after consumption over the last three months has been documented. Support may also be given for a longer period of time.

Support to costs related to urea consumption is dependent on that the enterprise does not get these costs covered by their customers or elsewhere. Only consumption of urea in waters subject to the NOx tax is eligible for support.

The support rates are per kilo urea - 40 % solution - with a maximum limit of up to 90 % of the urea costs. It is the consumption period that will determine which rate to apply:

• Urea consumption from 01.10.09 is given a support of NOK 2.50 per kilo
• Urea consumption from 28.08.09 to 30.09.10 is given a support of NOK 2.00 per kilo
• Urea consumption from 15.03.09 to 27.08.09 is given a support of NOK 1.50 per kilo 
• Urea consumption prior to 15.03.09 is given a support of NOK 2.00 per kilo

The support rate for urea may be adjusted every six months. Please use our application form.

Support to econometers and floating trawls
The NOx Fund has granted support to floating trawl, installation of econometers on vessels and other fuel saving measures. Positive results have been reported, and econometers may be profitable if the crew is given continuous training and follow-up. The NOx Fund has, however, decided not to grant further support to econometers on vessels, floating trawls or change of trawl doors.