The Danish Energy Agency has selected three companies, namely BioCirc CO2 ApS, Bioman ApS, and Carbon Capture Scotland in the second tender for carbon capture and storage (CCS) projects. The three company proposed projects expected to capture and store 160,350 tCO2/year between 2026 and 2032. They will receive a total of DKK167m (€22m), with a support level averaging DKK1,041/tCO2 (€140/tCO2). The tender for the pool for negative CO2 emissions (or NECCS pool) was originally targeting a capture and storage capacity of 0.5 MtCO2/year, compared to 0.16 MtCO2/year effectively awarded.
In 2020, the Danish parliament agreed to invest massively in the future technologies and therefore established a market-based fund of DKK 16bn (US$2.3bn) to support CCS. In 2023, the European Commission, under EU State aid rules, approved a DKK8.1bn (€1.1bn) national scheme to support the roll-out of CCS technologies. In September 2023, the government reached an agreement to capture and store at least 34 MtCO2 over 15 years. The project will involve two rounds of tenders with a total budget of DKK26.8bn (€3.6bn). The NECCS fund, a public programme aimed at developing CCS and focusing on emissions that can be captured, among other things, also began in April 2023. In the first tender, the country selected in June 2023 a project proposed by Ørsted able to capture and store 430,000 tCO2/year for 20 years starting in 2026.
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