Teco 2030 receives tax relief for carbon capture technology

Teco 2030 has been granted up to NOK 4 million in tax relief as indirect government support for developing carbon capture solutions for the shipping industry.

The support has been granted through the Research Council of Norway’s Skattefunn scheme, aiming to support R&D activities in Norwegian companies. It provides indirect support in the form of tax deductions on costs related to implemented R&D activities. The relief is granted under the Skattefunn scheme and will cover 19% of the project costs over 2021 and 2022.

The company is developing carbon capture solutions for ships together with Chart Industries, Inc. The solutions will separate the CO2 from the ship’s exhaust gases and store it in liquid form until it can be offloaded when the ship has reached port. The CO2 can then be permanently stored in underground geological formations or utilised in industries, such as the agricultural, industrial, energy, or food and beverage sectors. The technology can capture more than 90% of the CO2 in the ship exhaust.

Tore Enger, CEO of Teco 2030 ASA, said, “We are very pleased and thankful for the support we have now received from the Research Council of Norway to this end. The recognition of carbon capture as an emissions reduction technology for the maritime industry represents a milestone in our efforts.”

Teco is separating its carbon capture business unit into a separate entity and will be known as Teco 2030 Carbon Capture AS.

It is also developing hydrogen fuel cells solution for the maritime industry. With the Teco 2030 Marine Fuel Cell, ships will switch from fossil fuels to hydrogen and become emissions-free.