This week, Denmark announced a third fund that will support the development of carbon capture and storage (CCS) initiatives in the country as part of its decarbonization strategy.
The country announced an astounding $4.2 billion (DKK 28.7 billion) fund, a third of its kind in a series of government-released funding opportunities directed towards the advancement of CCS projects that will help reduce Denmark’s carbon footprint.
The latest fund, provided by the Danish Energy Agency, is now in the tendering process, where interested parties can apply and submit offers.
The tendering procedure will include negotiations, in which applicants bid a fixed annual amount of carbon along with the price per tonne that they will capture and sequester, where the agency can choose to provide financing to multiple contenders.
Created to guarantee maximum competition, the fund aims to highlight and support the highest possible carbon reductions at the lowest possible expense, providing subsidies that will be paid per tonne of stored carbon.
The selected projects will receive the funding over a period of 15 years, and the means awarded will go towards the capture, transportation, and geological storage of carbon that is biogenic, atmospheric, or comes from fossil-based sources.
The subsidies come with the requirement that capture facilities must be commissioned by December 1, 2029, and active capture and storage operations must begin in 2030.
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By launching this funding opportunity, from 2030 onward Denmark hopes to be able to achieve around a 5% reduction in its annual carbon emissions, equaling around 2.3 million tonnes per year.
The Danish Energy Agency has a solid track record of commitment to emissions curbing, including the approval of the first-ever carbon storage permit in Denmark for the Greensand Pilot Injection Project, which made the major breakthrough of the first-ever carbon injection in the North Sea earlier this year.
Following the rollout of two successful CCS funds so far, Denmark is introducing the latest fund in an effort to further accelerate the adoption of this promising, climate-relevant technology. In order to be implemented, the new CCS fund will need to receive state-aid approval by the European Commission.
Read more: Denmark Issues First License For Onshore CCS To Wintershall Dea
