Abstract. The interaction between policy making and industry is a key to understanding the conditions for 'greening' contemporary energy systems. This article uses efforts toward greening the Mongstad oil refinery in Norway as a case to analyse the challenges involved in politically stimulated shifts towards increased sustainability in the energy sector. A technology test centre and a full-scale carbon capture and storage (CCS) project at Mongstad were the centrepiece of the Stoltenberg government's (2005-2013) climate strategy. However, the project suffered delays and cost overruns until the full-scale carbon capture and storage project was eventually stopped. It is argued that interactions between the policy-making and industrial innovation arenas involved in this case are challenging because they operate according to different internal logics. We conceptualize this divergence as 'policy/industry dissonance' and suggest that this concept is a useful complement to literatures on regional innovation systems (RIS) and the multilevel perspective on sustainability transitions (MLP).
Keywords: energy, policy, innovation, carbon capture and storage, dissonance
IntroductionInteractions between the public sector and the industry innovation arena provide a key to understanding the current conditions for 'greening' contemporary energy systems. As institutional perspectives recognize, the state is shaping the foundations for energy production and energy markets by governing resources; among other issues, this involves establishing legal frameworks, initiating infrastructure development and controlling land use (Martin and Sunley, 1997; Norberg-Bohm, 1999). Persistent and stable public policy regimes are critical to driving changes in energy production and consumption (Grubler, 2012). Given concerns over the environment, climate change and energy security, it is of significant public and commercial interest that industries shift towards greener forms of energy production and that industrial stakeholders take part in stimulating such a shift through prioritizing innovation and investment for that purpose (Head, 2011;Porter and Kramer, 2011).However, the transition to more sustainable energy systems presents significant challenges for policy makers and governments. For industry, the key driving force behind eco-innovations is generating business opportunities and reducing costs, and public sector institutions have a wide range of tools available to stimulate innovation and drive technological change. It is unclear which tools are appropriate and effective in different contexts. The broad question posed in this article is: how can we understand and conceptualize the constraints on policyefforts of greening large-scale energy production?Our contention is that interactions between the policy-making arena and industrial sector innovation is challenging because these arenas operate according to different logics, and that understanding this 'policy/industry dissonance' is important in explaining the failure of public sector instit...