Denmark Awards Equinor With CO2 Storage Exploration Permit

Denmark Awards Equinor With CO2 Storage Exploration Permit - Carbon Herald

Energy company Equinor, along with partners Ørsted and Nordsøfonden, has secured its first permit to explore the possibility of building a safe underground storage facility for CO2 in Denmark. 

The project, named CO2 Storage Kalundborg, will target a reservoir roughly 1.4 kilometers beneath the surface in North West Zealand. 

If successful, it has the potential to store up to 12 million tons of CO2 annually.

The coming years will involve surveys to assess the suitability of the site for long-term CO2 storage. 

Following approval from Danish authorities, the facility could be operational by the end of the decade.

“We are delighted to receive this exploration permit together with Ørsted and Nordsøfonden,” said Grete Tveit, senior vice president for Low Carbon Solutions at Equinor.

“Developing large-scale CO2 solutions is critical for hard-to-abate industries to reduce emissions while maintaining industrial activity and value creation. Our first important task in the project is to ensure that environmental requirements are met before seismic and subsurface data collection can start,” Tveit stated.

Focus on Environmental Responsibility and Collaboration

Tveit emphasized the importance of environmental responsibility. Ensuring compliance with strict regulations will be a priority before any data collection begins. The exploration phase is expected to take several years.

The partnership structure sees Equinor hold the majority stake (60%) in the exploration license. Ørsted and Nordsøfonden, representing the Danish state, each hold a 20% stake.

Equinor sees this project as a stepping stone towards its goal of capturing and storing 30 to 50 million tons of CO2 annually by 2035. They plan to leverage their experience in CO2 storage from the Norwegian Continental Shelf.

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“This aligns perfectly with our ambitions for CO2 storage,” said Tveit. “The location near Ørsted’s existing infrastructure makes it ideal. By combining our expertise, we can establish a complete CO2 value chain – from capture and transport to secure storage.”

The chosen exploration area is situated close to Ørsted’s established CO2 hub in Kalundborg, Denmark. 

This hub includes a CO2 capture facility under construction at the Asnæs Power Plant, scheduled to launch in early 2026. Captured CO2 will initially be shipped to the Northern Lights storage facility in Norway.

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Ørsted’s terminal, with its strategic position and capacity, will play a critical role in receiving and transporting CO2 to the potential storage facility planned by the new partnership. 

Ole Thomsen, senior vice president and head of Ørsted’s Bioenergy business, said: “We are pleased that we, along with Equinor and Nordsøfonden, have been awarded a license to explore whether the area in the municipality of Kalundborg is suitable for carbon storage.”

“From 2026, we will capture 430,000 tons of biogenic CO2 from two of our combined heat and power plants, and being part of this collaboration is a natural next step in building our Ørsted Kalundborg CO2 Hub, as we are already establishing the logistics, infrastructure, and terminal solutions necessary for handling CO2 at Kalundborg.”

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