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Perspective

Carbon capture, storage and utilisation

Building the CCUS value chain

From ambitious targets to specific projects, Denmark is rapidly building the full CCUS value chain. The momentum is driven by political backing, international cooperation, and public–private partnerships.
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By State of Green | [email protected]
8 December 2025

White Paper: Carbon capture, utilisation, and storage

This article is a part of the Carbon capture, utilisation, and storage white paper.
It takes the reader through Denmark’s emerging CCUS value chain, covering capture, transport, utilisation, and storage. It highlights the policies, partnerships, and projects that are turning ambition into action, showing how CCUS can support Denmark’s climate goals while contributing to the global green transition. It also explores how continued innovation can lower costs and increase the prospects for job creation.
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In just a few years, CCUS has moved from a vision to an emerging value chain. Supported by strong political commitment, cross-border collaboration, and close cooperation between government and industry, Denmark is establishing the regulatory framework, infrastructure, and large-scale projects needed to make CCUS a central pillar of its climate strategy. 

A strong political commitment and stable framework
With broad parliamentary backing, Denmark has established a strong political mandate for CCUS. A national CCS strategy introduced new legislation under the Subsurface and Environmental Assessment Acts, ensuring safe and responsible storage while increasing investors’ confidence in long-term stability. 

Since then, more than 10 political agreements and approximately EUR 5 billion in support has been allocated to develop the market. Following this, the National Strategy on PtX introduced a PtX task force to support the development of a Danish PtX market and infrastructure. 

In addition, three subsequent agreements have been concluded regarding hydrogen infrastructure, the latest of which has deviated from the approach of expanding the hydrogen infrastructure on market terms, instead providing approximately EUR 925 million in loans and up to 1.42 billion EUR in state subsidies towards the development of a hydrogen pipeline connecting Danish hydrogen production with German offtakers. The final investment decision of the pipeline is contingent on the capacity sale in 2026. 

Significant milestones on CCUS in Denmark
This approach has already reached significant milestones. In 2023, Project Greensand’s pilot project in the Danish North Sea became one of the first in the EU to demonstrate cross-border CO₂ storage, safely transporting and injecting CO₂ from Belgium into a depleted oil field in the Danish part of the North Sea. In 2025, the world’s largest commercial e-methanol plant, Kassø, owned by European Energy, opened. At the same time, the Danish energy company Ørsted is developing large-scale capture facilities at two combined heat and power plants. Step by step, Denmark is developing a complete value chain with capture at industrial point sources, transportation by ship, truck or pipeline, before either using or storing the CO2.  

Cross-border cooperation for CO₂ storage
International collaboration is central to Denmark’s strategy. By working to align frameworks with neighbouring countries, Denmark is helping to build a regional market for CO₂ storage and transport. This cross-border cooperation will reduce costs through economies of scale and strengthen Europe’s collective ability to meet its climate targets. 

Public-private partnerships driving CCUS
Public-private partnerships are central to Denmark’s model, ensuring that climate measures turn into tangible climate action. The progress of CCUS in Denmark is built on close collaboration between government and industry, ensuring new technologies move from pilot stage to full-scale deployment. By fostering strong partnerships, Denmark accelerates the scale-up of CCUS while keeping the market oriented towards long-term commercial viability. 

In a few years, the development of CCUS has advanced significantly in Denmark. This once novel technology has seen traction fuelled by clear commitments such as Denmark’s climate goals, parliamentary backing, international cooperation, and public-private partnerships. 

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