Since the Danish Climate Agreement for Energy and Industry of June 2020, Denmark has made CCUS a key pillar of its climate policy. One of the ways Denmark drives technology development and the scale-up of CCUS is with stable framework conditions and new subsidy funds. 

 Strong political commitment and stable framework
In 2021, Denmark presented its strategy for the capture, transport, and storage of CO2, called the CCS strategy. This was backed by almost all political parties in the Danish Parliament. The CCS strategy outlines central conditions for CO₂ capture, transport and storage, separating utilisation for a later strategy on PtX, which was introduced in 2022. The PtX strategy addresses the use of CO₂ for developing solutions based on green hydrogen.   

• The PtX fund was tendered in 2023, allocating around EUR 188 million to support green hydrogen production. The fund attracted strong interest and awarded contracts to five projects from three companies, European Energy (Vindtestcenter Måde, Padborg PtX, and the Kassø expansion), Electrochaea (Biocat Roslev), and HyProDenmark (Everfuel). Together, these projects will deliver more than 200 MW of electrolysis capacity. 

The PtX tender complements schemes on carbon capture by creating potential demand for captured CO₂ as a feedstock in green fuels, further strengthening the business case for both sectors. 

The CCS strategy aims to ensure that the market for CO2 storage develops and operates on market-based terms. Regulation was updated to allow CO₂ storage and ensure all projects are covered by Denmark’s Environmental Assessment Act. It also involves state co-ownership of storage sites. These adjustments to regulation have two main benefits, first, establishing a solid legal foundation for potential investors. Second, responsible operation for both environment and people. Alongside allocations from the Green Tax Reform and dedicated funding for CO₂ capture from biogenic sources, the CCS strategy paves the way for deploying subsidies of over EUR 5 billion.  

Currently, Denmark has launched three main subsidy funds to kick-start the capture, transport, and storage of CO2 to secure emission reductions and removals. All funds are developed and administered by the Danish Energy Agency. 

• The CCUS fund, totalling little more than EUR 1 billion, was awarded to Ørsted for projects at Asnæs and Avedøre power stations, aiming for full capture and storage of 430,000 tonnes of CO₂ annually from 2026. 

• The NECCS fund (negative emissions via carbon capture and storage) focuses on biogenic CO₂, securing the capture and storage of 0.16 million tonnes of CO₂ annually from 2026 to 2032. The three companies granted support are BioCirc CO₂, Bioman, and Carbon Capture Scotland Limited (now The Carbon Removers). The projects are located at several plants across Denmark. 

• The CCS fund is the largest of the three schemes, tendering around EUR 3.85 billion over 15 years. The scheme expects to reduce emissions by 2.3 million tonnes of CO₂ annually from 2030 by offering contracts per tonne of CO₂ captured and stored. The tender is ongoing, with a final decision to be announced in the spring of 2026. 

Besides the subsidy funds, Denmark focuses on building out storage and cross-border transport, which will be elaborated in the upcoming chapters.