LONDON (Dow Jones)--Royal Dutch Shell PLC (RDSB.LN) and StatoilHydro ASA (STO) have said they have scrapped plans to build a clean gas-fired power plant in Norway.
In a press statement on its Norwegian unit's Web site Thursday, Shell said it had abandoned a joint project with StatoilHydro to build a a 860 megawatt plant in Tjeldbergodden in Norway.
The plant would have been able to capture and store carbon dioxide, it said.
Shell added it had to scrap the project because it was not making economic sense and due to high gas prices and industrywide cost inflation. Public financing would have been needed to make the project profitable, it said.