The Danish Energy Agency Prequalifies Ten Companies for CCS Funding

The Danish Energy Agency has announced the prequalification of ten companies eligible to submit proposals for funding under its carbon capture and storage (CCS) initiative. This initiative aims to support Denmark in achieving its climate goals by reducing annual CO2 emissions by 2.3 million tonnes from 2030.

The selected companies were chosen based on their experience in CCS projects, infrastructure projects, and related activities. With a funding of DKK 28.7 billion (approximately $4.31 billion), Denmark is taking significant steps towards establishing a market for carbon capture and storage within the country.

Deputy Director General of the Danish Energy Agency, Peter Christian Baggesgaard Hansen, emphasized the importance of CCS in addressing the climate challenge. He expressed satisfaction with the strong interest shown by companies in contributing to Denmark’s climate goals through CCS.

Among the prequalified companies are AffaldPlus Affaldsenergi, ARGO CCS, E.ON Carbon Capture Solutions, Copenhagen ApS, Energnist CaptureCo, Fjernvarme Fyn Fangst, Gaia ProjectCo P/S, HOFOR DSS SPV, Kredsløb Holding, Ørsted Bioenergy & Thermal Power, and Aalborg Portland.

Ørsted Bioenergy & Thermal Power, one of the shortlisted companies, secured a 20-year contract for Denmark’s first full-scale CCS project in 2023. The funding will cover capture, transportation, and geological storage of CO2 over a 15-year contract period.

Baggesgaard Hansen highlighted that the CCS fund aims to ensure actual CO2 reductions, with payments only made upon successful storage. The funding will be based on the amount of CO2 captured and stored, contributing to Denmark’s climate targets.

The prequalified companies have until August 26, 2025, to submit detailed project descriptions and bids. Following this, a negotiation phase will take place between the Danish Energy Agency and the bidders, with final offers due by December 17, 2025.

The implementation of the CCS fund is subject to state aid approval from the European Commission, emphasizing the importance of regulatory compliance in such initiatives.

Denmark recently witnessed its first CO2 storage project with the Greensand Pilot Injection Project in late 2022. The successful injection of CO2 in the North Sea by partners INEOS E&P and Wintershall Dea marked a significant milestone in Denmark’s journey towards carbon capture and storage.