New support rates in 2014

From 1.1.2014 the NOx Fund decreases the support rates for NOx-reducing measures.

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Publisert 16.10.13

NOx

The support rates will be reduced for applications which the NOx Fund receives as of 1.1.2014 to NOK 50, 100, 200 and 300 per kg NOx, respectively, depending on the measure.

The new rates do not apply to applications received prior to 1.1.2014, even though the measure is to be implemented in the future. Measures implemented prior to 1.1.2014 which are applied for after this date, will be granted support based on the conditions in effect at the time of implementation.

Support rates for applications received after 1.1.2014:

  • New-builds and retrofitting gas propulsion on ships and oil rigs
    New buildings or retrofitting to gas propulsion with implementation before the end of 2016 may receive up to 80 % support, maximum up to NOK 300 per kg NOx reduced. New ships must have been keel laid by the end of 2015 in order to qualify for support from the NOx Fund.

  • LNG-infrastructure
    Applications relating to LNG infrastructure which are received before the end of 2014 may be granted 50% support, limited upwards to a maximum 2M NOK per facility above a certain size (1400 m3).For smaller facilities, the maximum support rate will be lower, depending on tank  capacity while still being limited to 50% of the invested amount.

    The facility must grant third party access. Applicants have an obligation to keep tariffs at corresponding or lower levels for five years following the end of the verification period, or until the entry into force date –if any - of the EU’s third Energy Directive. Applicants are obligated to publish their tariffs on their website.

  • New and promising NOx reducing measures
    New and promising NOx reducing technologies may receive up to 80 % support, maximum up to NOK 200 per kg NOx reduced. The measures have to be implemented before the end of 2016. For new vessels, keel laying must take place before the end of 2015.

    A guaranteed minimum payment of 20% of the stipulated maximum support rate will be granted irrespective of achieved NOx reductions. An assessment will be done by DNV to evaluate whether the technology is considered new and promising.

  • SCR facilities with the use of urea on board ships
    SCR facilities on ships may receive up to 60% support, maximum up to NOK 100 per kg NOx reduced, given that logging equipment for operating hours and the use of urea are installed. The measure will have to be implemented before the end of 2016. For new vessels, keel laying must take place before the end of 2015.

    • Costs relating to urea:
      Operating support will be granted in relation to urea and is NOK 2.50 per kg consumed. The support rate for urea may be adjusted.

    • Costs relating to replacement of catalyst elements:
      Enterprises that has documentation of operating steady, may be granted support to replace catalyst elements with up to 60% of the costs, or up to NOK 45 000 per m³ catalystmaterial.  The need and reasons for the upcoming replacement must be documented. The support rate may be adjusted.
  • SCR and SNCR facilities in the waste incineration plants
    SCR and SNCR facilities in the waste incineration industry whose implementation is stipulated before the end of 2016 may achieve up to 80% support, limited upwards to a maximum of NOK 200/kg NOx reduced. Operating support is not granted in relation to the use of ammonium chloride/ammonia in the waste incineration industry.

  • Battery-powered propulsion of ships
    Applications relating to battery-powered propulsion of ships with implementation before the end of 2016 may receive up to 80 % support, maximum up to NOK 300 per kg NOx reduced. This also applies to emission reductions which may attributed to battery-powered propulsion in hybrid solutions where battery-powered propulsion is used in combination with diesel or LNG powered propulsion. Costs relating to necessary onshore charging systems for ships, except from investment contributions to electricity-infrastructure, can be included in the application

  • Gas used in industry, on offshore installations and in plants for energy recover
    Applications relating to gas used in industry and as replacement for the use of oil as support fuel in plants for energy recovery of waste with implementation before the end of 2016 may receive up to 80 % support, maximum up to NOK 200 per kg NOx reduced.

  • Low NOx engine modification
    Low NOx engine modifications with implementation before the end of 2016 may receive up to 80 % support, maximum up to NOK 200 per kg NOx reduced. For new ships keel laying must take place before the end of 2015.

  • Engine replacements
    In the case of engine replacements a decreasing support rate will be applied based on the age of the relevant engine, as replacement of older engines may be implemented for other purposes than NOx reductions. Only voluntary engine replacements that are not caused by engine breakdowns, requirements laid down by the Authorities or requirements stipulated in tenders or the like, are eligible for support from the NOx Fund. 

    Engines up to 12 years old, where the replacement is implemented before the end of 2016, can get up to 70 per cent of the investment cost covered by the Fund, up to a maximum of 200 NOK per kg NOx reduced. Engines older than 12 years will face a linear decreasing support rate. When the engine is 40 years or older there will be no support for engine replacements. The support will be decreasing concerning both percentage of support and NOK per kg NOx reduced.Click here for table and graph showing the support rates in per cent and NOK per kg NOx reduced for engine replacements.

    Click here for figures showing the new support rates in per cent and NOK per kg NOx reduced for engine replacements.

  • EGR and water-based facilities
    EGR and water-based facilities (f. ex. HAM systems) with implementation before the end of 2016 may receive up to 80 % support, maximum up to NOK 200 per kg NOx reduced. For new ships keel laying must take place before the end of 2015.

  • Energy efficiency measures
    Energy efficiency measures with implementation before the end of 2016 may receive up to 80 % support, maximum up to NOK 200 per kg NOx reduced.

  • Measures relating to existing sources
    Technical measures in relation to existing sources resulting in reduced fuel consumption may be granted support. Measures where the fuel saving effect is less than 2% will not receive support unless the actual reduction may be documented by detailed accounting figures showing energy consumption before and after implementation. Switching from traditional lightening armatures to more energy-efficient lightening is one such example that would be eligible for support.

    Purely operational adjustments with fuel saving effects are not eligible for support as an energy efficiency measure under the NOx Fund. Only technical installations and rebuilds will be eligible for support.

  • Measures relating to existing sources
    As a general rule energy efficiency measures, in relation to new sources are not eligible for support. Measures considered to be particularly innovative and to represent a high degree of improvement compared to what is otherwise considered to be relevant technology for new sources may be eligible for support.

    Waste Heat Recovery-systems on board ships that convert excess heat into electricity which serves to replace the energy production generated by engines constitutes one example that would be eligible for support.

    Hybrid systems which previously have been granted support on certain types of vessels, including AHTS will not be eligible for support post 31st December 2013.

    Support will not be granted to econometers on board ships, floating trawls or trawl doors, neither for existing nor for new ships.

  • Other NOx reducing measures
    Other NOx reducing measures before the end of 2016 may receive up to 80 % support, maximum up to NOK 200 per kg NOx reduced. An example of a measures that may fall under this category include industrial process optimization measures that reduce NOx emissions.

  • Applications relating to measures where the NOx emission constitutes a positive side effect
    Applications relating to measures with implementation before the end of 2016 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. This will primarily apply to offshore measures where the NOx reduction constitutes a side effect of other, often very expensive measures.

  • Maximum support limit
    The maximum support rate for measures on installations or on board vessels is NOK 100 million.


    Applicant's responsibilities and risk
    The financial support allocated by the NOx Fund is granted as investment support. The support is being calculated based on the applicant’s own investment appraisal. It is therefore important that all costs are included in the investment appraisal. This is something the applicant is responsible for.

The support will be paid out once the measure has been implemented and verified by Det Norske Veritas.  The measure is implemented at the applicant’s own expense and risk.

Please contact us if you have any questions regarding implementation of measures.