Five Northern European Countries Sign CO2 Transport And Storage Agreements

Five Northern European Countries Sign CO2 Transport And Storage Agreements - Carbon Herald
Image: Embassy of the Netherlands in Norway

Yesterday, Denmark, Belgium, the Netherlands and Sweden signed agreement with Norway, setting up a framework for transporting and storing carbon dioxide in the North Sea region. Denmark and Sweden also signed a bilateral agreement, further strengthening the commitment of Northern European countries to manage their CO2 emissions.

With the agreements in place, investors and states are expected to increase funding for infrastructure that will transport CO2 from Europe’s large industrial centers to storage sites and lay the foundation for a CO2 market in the region.

The agreement follows a number of other partnerships that are creating the outlines of the supply and demand sides of this market. In 2021, Norway and the Netherlands forged an agreement on energy collaboration in the North Sea region, encompassing carbon capture and storage initiatives. Following suit, Norway established similar agreements with Belgium in 2022 and Denmark in 2023, alongside a collaborative declaration with Sweden in 2022.

Moreover, Denmark, Belgium, and the Netherlands signed agreements in 2022 and 2023 facilitating the cross-border transport and storage of captured carbon.

Relevant: France Signs Carbon Storage Agreement With Denmark

On March 4th this year Denmark and France also agreed to work together on CO2 transportation and storage, with the latter having limited potential to sequester the greenhouse gas.

There have also been strides on the supply side, with CO2 storage capacity in the European region gradually coming online. In August 2023 Denmark announced it will be investing $3.9 billion in carbon capture and storage, Norway has been developing its offshore sites with the most recent licensing round coming last March and earlier this week the Porthos project in the Netherlands made its first drilling under the seawall.

Relevant: Clean Air Task Force Paper Explores Carbon Contracts For Difference In The EU Policy Landscape

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