Funds of up to DKK 16 billion

A total of up to DKK 16 billion is planned to be made available with an ambition of capturing and storing 0.4 million tonnes of CO₂ from 2025, and 0.9 million tonnes from 2030. This agreement also opens the door for CO₂ to be used for synthetic fuel production. The first announcement of funds is expected to take place this year.

Heavy industry and Combined Heat and Power Plants that burn waste are pointed to as relevant potential applicants.

Facts

• A timetable for the capture, transport and storage of carbon is the second part of the overall strategy for carbon capture and storage. The first part came in June.
• The Danish Climate Agreement for Energy and Industry 2020 allows for the establishment of a pool of funds of up to DKK 16 billion in two funding waves for the development of carbon capture, transport, storage.
• In the short-term, funds are available to CO₂ emitters interested in carbon storage and transport etc., and who take responsibility for documenting their CO₂ reductions.
• The Agreement paves the way for the implementation of CO₂ reductions of 0.4 tonnes per year from 2025.
• It is supplemented by a range of long-term initiatives, which will lead to a market-based rollout of CCS in Denmark, by introducing taxes and expenditure on emissions purchases, for example.
• The agreement is also focussed on strengthening global CCS through EU regulation and promoting Denmark as a European carbon storage hub.
• In June, the Danish government and a large number of others agreed to the plan and timetable for introducing carbon storage. This is the first step in Denmark’s overall CCS strategy. DKK 210 million was set aside for GEUS to survey potential carbon storage sites.
• The timetable for carbon capture, transport and storage is a supplement to the green sub-agreement of the Finance Act 2022 agreed on by the Danish Social Liberal Party, the Socialist People’s Party, the Red-Green Alliance, The Alternative and the Christian Democrats, with DKK 2.5 billion set aside for a carbon capture funding pool. It is expected to lead to CO₂ reductions of 0.5 tonnes per year from 2025.