The Danish Energy Agency has launched a DKK28.7bn (€3.8bn) fund to secure carbon capture and storage (CCS) by 2029. The fund expects to cover the costs of capture, transportation and geological storage of fossil, biogenic or atmospheric CO2 over a 15-year contract period.
The Fund aims to reduce the country’s 2.3 MtCO2/year by 2030 and is designed to ensure maximum competition for funding to achieve the highest possible CO2 reductions at the lowest possible cost. The tender process will be carried out by negotiation, where bidders should submit a fixed amount of CO₂ per year and a price per tonne they will capture and store, with the award being a subsidy paid per tonne of CO2 stored. The awarded CCS facilities must be commissioned by 1 December 2029, with full capture and storage from 2030. The deadline for applying to the tendering procedure is 25 March 2025.
The CCS Fund is the third fund administered by the Danish Energy Agency to fund carbon capture and storage. The first fund was the DKK8bn (€1bn) CCUS pool, won by Ørsted, which will capture and store 430 ktCO2/year from 2026 for a 20-year period. The second fund is the NECCS pool, completed in May 2024, awarded to three companies for the capture and storage of 160 kt of biogenic CO2 annually from 2026 to 2032.
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