Insight

Denmark’s latest CCS award strengthens the case for carbon management investment

Insight

Denmark’s latest CCS award strengthens the case for carbon management investment

Denmark’s largest carbon capture and storage project to date could provide more than emissions reductions at a single industrial site. By supporting the development of an integrated onshore CO2 value chain, it may also create new opportunities for emitters, technology providers and project developers across Northern Europe.

When

The Danish Energy Agency has awarded Aalborg Portland support for the capture, transport and permanent storage of up to 1.25 million tonnes of CO2 annually from 2030. Aalborg Portland’s ambition remains to capture up to 1.4 million tonnes annually from its cement production, with a total climate impact of around 1.5 million tonnes when additional effects such as surplus heat utilisation are included.

The ACCSION project will capture CO2 from Aalborg Portland’s cement production in Northern Jutland. The project is being developed with Air Liquide as the capture technology provider, the Greenstore consortium responsible for storage and Evida providing transport infrastructure.

The award marks a significant step in the decarbonisation of one of Denmark’s most emissions-intensive and hard-to-abate industrial processes. Cement production is particularly difficult to decarbonise because a substantial share of its emissions originates from the chemical conversion of limestone, meaning that electrification and renewable energy alone cannot eliminate them. Unlike many other industrial sectors, these process emissions are unavoidable in cement production. CCS is currently the only known technology capable of eliminating these emissions and enabling full decarbonisation of cement manufacturing. 

The project could enable the production of CO₂-neutral cement on direct emissions, helping to reduce emissions associated with future infrastructure and construction projects.

 

Illustration of ACCSION
Illustration of ACCSION by Aalborg Portland

New infrastructure could benefit more than one emitter

The potential impact extends beyond Aalborg Portland. According to the project partners, ACCSION is intended to establish one of Europe’s first fully integrated onshore carbon capture and storage value chains. This includes large-scale infrastructure for capturing, transporting and permanently storing CO2.

For other industrial and energy-sector emitters in Northern Jutland, proximity to this infrastructure could help reduce the cost, complexity and risk associated with developing individual carbon management projects. Shared infrastructure may make it easier for additional emitters to connect to transport and storage solutions as the market develops.
Connections to Danish ports could extend this potential further. Denmark’s location between major Northern European industrial regions and suitable geological storage formations means that Danish infrastructure could become part of a wider European CO2 transport and storage network.

The project may therefore contribute to making Northern Jutland an increasingly attractive location for companies developing technologies and services for industrial decarbonisation.

Beyond its impact in Denmark, ACCSION represents a strategic European industrial decarbonisation project. ACCSION can help demonstrate how hard-to-abate industries can reduce emissions while maintaining competitiveness, jobs and production capacity within Europe.

A growing Danish carbon management value chain

The Aalborg project is one part of a broader development taking place across Denmark. 

The project has also been designated Denmark’s first Strategic Net-Zero Project under the EU Net-Zero Industry Act framework. The designation provides accelerated permitting processes and regulatory support, underlining the project’s significance for both Danish and European climate objectives.

At the Port of Esbjerg, INEOS Energy is developing a CO2 transit terminal for Greensand Future. Captured and liquefied CO2 from Danish biogas plants will be received at the terminal before being transported by the dedicated carrier Carbon Destroyer 1 to permanent storage in the Nini field beneath the Danish North Sea.

Together, Denmark’s emerging onshore and offshore infrastructure could support different types of carbon management projects:

These developments are helping to connect CO2 sources, logistics, ports and geological storage in an increasingly integrated value chain.

Opportunities for direct air capture

Denmark also offers relevant conditions for companies working with direct air capture. Potential advantages include emerging CO2 transport and storage infrastructure and opportunities to connect with biogenic carbon capture projects, a highly developed energy infrastructure.  

Companies can also engage with Danish universities, technology specialists and research and demonstration programmes, including the Energy Technology Development and Demonstration Programme (EUDP) and the INNO-CCUS partnership.

The possibility of directing captured CO2 towards either permanent storage or utilisation could be particularly relevant for companies developing flexible carbon removal and carbon-to-product solutions.

Project economics will, however, depend on factors such as electricity availability and cost, infrastructure access, certification frameworks and the design of future support schemes.

Connecting carbon management with e-fuels

The expanding carbon management ecosystem also has implications for Power-to-X and the production of fuels such as e-methanol and synthetic sustainable aviation fuel, or e-SAF.

Denmark combines renewable energy development with companies and research environments working across electrolysis, hydrogen, carbon capture and fuel synthesis. Captured biogenic CO2 may provide a relevant feedstock for certain e-fuel projects, while European regulation is expected to support demand.

Under the EU’s ReFuelEU Aviation Regulation, fuel suppliers must gradually increase the share of sustainable aviation fuel supplied at eligible EU airports. A dedicated requirement for synthetic aviation fuels begins in 2030.

This combination of infrastructure, industrial partners, research capabilities and emerging demand makes Denmark a relevant location for developing and demonstrating integrated carbon management and Power-to-X solutions.

From individual projects to a connected market

The Aalborg Portland award does not complete Denmark’s carbon management journey. It does, however, represent an important move towards industrial-scale deployment.

As projects in Aalborg, Esbjerg and the North Sea progress, Denmark is building practical experience across the carbon management value chain. For international companies, the opportunity lies not only in individual capture or storage projects, but also in the technologies, services and partnerships needed to connect them.

Get in touch

Are you developing solutions within CCS, CCU, direct air capture or Power-to-X?

Contact Invest in Denmark to explore potential locations, partners and opportunities in Denmark’s growing carbon management ecosystem.

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