The Norwegian Government has pledged funding worth NOK80 million (£7.3m) for carbon capture and storage (CCS) research.
It will be provided for Front End Engineering and Design (FEED) studies, taking the total amount for the demonstration project in 2018 to NOK280 (£25.7m).
The funding will cover research into the transport of CO2, storage and up to two capture facilities.
The FEED study is usually the final phase which provides the necessary information for an investment decision.
The Ministry of Petroleum and Energy said: “The government’s ambition is to realise a cost-effective solution for CCS in Norway, provide this results in technology development internationally.
“Throughout the FEED phase, project risk will be reduced and the possibilities for realisation of co-benefits will be further clarified… When FEED and the externally quality assurance process is completed, the government will consider whether the demonstration project should be realised.”