The Danish Energy Agency has announced that 16 companies have applied for a portion of Denmark ’s new $4.1 billion carbon capture and storage (CCS) fund.
A maximum of 10 companies will be selected to participate, with applicants required to meet prequalification criteria before they can submit their bids. The agency will now evaluate the applications and choose 10 firms from the 16 that have applied.
The list of companies that have been pre-qualified to move forward with their bids will be revealed before the summer, followed by further negotiations.
Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency, expressed his satisfaction with the strong interest in the CCS fund.
“It is an important step to achieve Denmark’s climate goals. Now, it is our task at the Danish Energy Agency to continue the work so that the CCS fund can be converted into concrete CO2 reductions,” Hanses said.
The selection process will consider the applicants’ demonstrated experience in planning or managing CCS operations or large-scale construction projects.
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Final and binding bids (BAFO) are expected by December 17, 2025, with the agency aiming to finalize contract awards by April 2026. The implementation of the CCS fund will be contingent on receiving approval for state aid from the European Commission.
This CCS initiative is the third fund managed by the Danish Energy Agency, following similar state-supported programs for CO2 capture and storage, which have collectively allocated approximately $5.5 billion.
The first contract from the CCUS fund was awarded to Ørsted, which will capture and store 430,000 tonnes of CO2 annually from 2026 for a 20-year period.
Additionally, in May 2024, the Danish Energy Agency concluded the NECCS fund tender, awarding contracts to three companies to capture and store 160,350 tons of biogenic CO2 annually from 2026 to 2032.
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