Denmark's Pioneering Support for CCUS – A Gateway for Foreign Companies
Denmark's Pioneering Support for CCUS – A Gateway for Foreign Companies

Insight

Denmark's Pioneering Support for CCUS – A Gateway for Foreign Companies

Insight

Denmark's Pioneering Support for CCUS – A Gateway for Foreign Companies

Denmark stands at the forefront of addressing climate challenges through robust initiatives, with Carbon Capture, Utilisation, and Storage (CCUS) playing a pivotal role. The Danish government, recognizing the urgency outlined by the UN’s IPCC (Intergovernmental Panel on Climate Change) that capture and storage of biogenic CO2 is one of the important tools to fight climate change, has committed substantial funding to accelerate the adoption of CCUS technologies.

When

Funding Initiatives

  • Phase 1: CCUS Fund - DKK 8 Billion
    In May 2023, the Danish government approved an initial investment of DKK 8 billion for the first phase of the CCUS fund. Aligned with the 2020 Energy and Industry Climate Agreement, this fund targets CO2 capture, transport, and utilization or storage in Denmark. The first phase aims for an annual reduction of 0.4 million tons of CO2 from 2025/2026 and onwards, with a second phase targeting an additional 0.5 million tons annually from 2030. 

    It was Ørsted who was awarded a 20-year contract for its carbon capture and storage (CCS) project ‘Ørsted Kalundborg Hub’. The project entails that Ørsted will establish carbon capture at its wood chip-fired Asnæs Power Station in Kalundborg in western Zealand and at the Avedøre Power Station’s straw-fired boiler in the Greater Copenhagen area.

  • Phase 2: NECCS Fund - DKK 2.5 Billion
    As an extension of the CCUS fund, the government earmarked an additional DKK 2.5 billion for the Negative Emissions Carbon Capture and Storage (NECCS) fund. This fund, currently open for bidding until 1 December 2023, focuses on realizing negative CO2 emissions through support to biogenic CO2 sources. The aim is to achieve 0.5 million tons of CO2 reductions annually from 2025 to 2032.
  • Phase 3: GSR + CCUS Round 2 Fund - DKK 27 Billion (Upcoming Rounds in June 2024 and June 2025)
    In June 2024 and June 2025, the government will combine the second round of the CCUS fund with the Green Transformation Scheme (GSR) fund, allocating a total of DKK 27 billion. These funds will be offered in two bidding rounds for the capture of a minimum of 0.9 million tons (June 2024) and 1.4 million tons annually (June 2025), emphasizing competition for the most cost-effective reductions.
 
Green banner for biosolutions - Invest in Denmark

Visit the CCUS funding site at the Danish Energy Agency website

(Only in Danish)

Visit Danish Energy Agency website here

CCUS map in Denmark
Areas in the tender for geological storage of CO2. 

Impactful Support for Global CCUS Collaboration

The combined allocation of DKK 37.5 billion from 2020-2022 underscores Denmark's commitment to support CCS projects. With the expectation of realizing reductions totalling 3.2 million tons through support for CO2 capture, transport, and storage, Denmark opens its doors to foreign companies seeking to contribute to and benefit from the country's CCUS ecosystem.

Foreign companies in the CCUS sector are invited to explore the opportunities Denmark presents. The Danish government's substantial funding initiatives create an environment conducive to innovation, collaboration, and the realization of impactful carbon reductions.

By leveraging these funding opportunities, foreign entities can play a key role in Denmark's journey towards a greener, more sustainable future.

Get in touch

Want to know more about Denmark's CCUS funding and investment landscape? 

We provide free-of-charge confidential and tailor-made solutions for foreign companies looking to set up a new business in Denmark or expand an existing one. Please contact one of our experts here:

Copenhagen

  • Sarina Lohmann

    Title: Special Advisor – Maritime and transport – Analysis & Partnerships

    Area: Copenhagen

    Phone: +4533920423

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