Denmark has awarded its first exclusive licenses for full-scale carbon storage exploration in the Danish North Sea to TotalEnergies and a consortium featuring INEOS and Wintershall.
“Granting the first exclusive permits for full-scale CO2 storage in the North Sea is an important step into the future,” said Kristoffer Böttzauw, the director of the Danish Energy Agency (DEA). “CO2 capture and storage is an important element in the green transition. Today’s licenses are the result of the effective implementation of the first Danish political agreements on CCS.”
The CO2 storage applications were evaluated by the DEA and the licenses were issued by Denmark’s Ministry of Climate Energy and Utilities. National oil and gas company Nordsøfonden will represent the state’s interest and will have a 20% share in each of the licenses.
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Two permits were granted to TotalEnergies and one to the INEOS and Wintershall consortium.
The exclusive licenses are an important part of Denmark’s carbon capture and storage strategy and the country’s carbon neutrality target by 2050. According to the Geological Survey of Denmark and Greenland (GEUS), the Danish subsurface is particularly suitable for both onshore and offshore carbon storage. GEUS has found that the subsurface in Denmark can theoretically store as much as 22 billion tons of carbon dioxide.
The CO2 storage permissions can initially be granted for exploration for up to six years, during which the exploring company will have exclusive rights to the area. In case a suitable location for carbon storage is found, the license can be extended for up to 30 years for storage operations.
Full-scale carbon storage offshore will be tested in Denmark as part of Project Greensand, which is a pilot by INEOS and funded by Denmark’s Energy Technology Development and Demonstration Program (EUDP).
Read more: Denmark Awards First CO2 Storage Permit For The Project Greensand
