Denmark has unveiled an ambitious incentive plan with the objective of accelerating the deployment of carbon capture and storage (CCS) technology, as reported by Reuters on August 21. The plan entails a government allocation of DKK26.8bn (USD3.9bn) over a span of 15 years for projects capable of capturing and storing 2.3 million tons of carbon dioxide (CO2) emissions annually. To achieve this goal, Denmark will initiate a major tender process in 2024, earmarking USD 1.5 billion for investments in projects with a total CCS capacity of 0.9 million tons per year. Subsequently, an additional bidding round in 2025 will allocate the remaining USD 2.4 billion to projects with an annual CCS capacity of 1.4 million tons. For a new CCS project to be eligible for government subsidies under this plan, it must commence operations by 2029.

The Danish Ministry of Climate and Energy has stated that the incentive scheme is designed to stimulate greater participation from companies in Denmark’s CCS sector. Earlier this year, the Danish government granted its first license for CO2 capture and storage in the North Sea to three companies: Wintershall Dea, INEOS Energy, and TotalEnergies [TTE:FP]. Denmark has set ambitious climate goals, aiming for carbon neutrality by 2045 and carbon negativity by 2050. CCS is considered a crucial tool in achieving these objectives, with a target of developing a carbon-capturing capacity of at least 3.2 million tons annually by 2030.

Sources:

https://www.reuters.com/sustainability/climate-energy/denmark-plans-allocate-268-bln-crowns-new-co2-capture-storage-tenders-2023-08-21/

https://maritime-executive.com/article/denmark-allocates-3-9b-to-carbon-capture-storage-as-it-accelerates-timing

https://www.climatechangenews.com/2023/02/07/denmark-to-put-co2-in-seabed-in-step-towards-carbon-negativity/