Denmark To Boost Carbon Capture With $3.9B Investment

Credit: Boromir1 | Pixabay

Denmark announces new requirements for its carbon capture plan, creating clearer framework conditions for the CO2 storage industry. It released a new comprehensive program that includes significant government support as it wants to accelerate the timing and thus the amount of the CO2 captured and stored in the country. 

Relevant: Ørsted Awarded Contract For Denmark’s Carbon Capture Project

“We are moving the requirement for full capture from 2030 to 2029 so that we get more CO2 from the air and into the underground faste… The plan must also ensure a clearer framework for the burgeoning industry and in this way bring the Danish CCS industry up in scale and down in price. It may well be that it’s geeky, but it’s in the geekery that things happen,” announced Climate, Energy and Supply Minister Lars Aagaard during a briefing about the new plan at Avedøreværket, a power station south of Copenhagen. 

Under the previous government plan, Denmark must capture at least 3.2 million tons of CO2 annually by 2030, however, the new requirements move the deadline to 2029 or one year sooner. The government also said there is a possibility to start the large-scale capture and storage efforts by 2028.

Source: hyotographics via Shutterstock

The new plan also includes the launch of two large, comprehensive tenders, one in 2024 and a second in 2025 rather than smaller tenders. It will invest approximately $3.9 billion, with around $1.5 billion for the 2024 tender and a further nearly $2.4 billion in 2025 allocated over a 15-year period to support the programs. 

The goal for 2024 is to set up plans for 0.9 million tons of carbon capture and storage and a further 1.4 million tons in the 2025 tender. The government will hold 20% state ownership.

Relevant: New Study Unveils Potential Risks In Carbon Storage Sites In Denmark

The updated plan also ensures clear framework conditions for the industry regarding ownership and regulation for the transport of CO2 via pipelines. The government announced it will also expand the existing rules for the transport of CO2 to include all forms of CO2 transport, which is particularly important for the use of CO2 in PtX facilities and for the CO2 that needs to be shipped via ports for offshore storage.

According to the government announcement, with its new plan Denmark aims to increase the size and scope of the carbon capture and storage efforts so that more companies can bid and participate in the endeavor.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »