Skip to content


Carbon capture, storage and utilisation

Green hydrogen


Denmark’s new plan for carbon capture and storage

To achieve reductions of at least 3.2 million tonnes of CO2 by 2030, the Danish government has proposed a new plan for Carbon Capture and Storage (CCS).

White paper: Carbon, capture, utilisation, and storage

Want to learn more about how Danish initiatives within carbon capture, utilisation and storage? Download our white paper.

Download now

In a host of climate-mitigating technologies, carbon capture and storage (CCS) is one of several methods to reach global climate targets. In Denmark, the industry is already underway. Amongst others, three large-scale storage permits have been granted, and the first international agreement on storage in Denmark has been signed.

To build on the momentum, a new plan presented on 20 August by Lars Aagard, the Danish Minister for Climate, Energy, and Supply, seeks to accelerate the development of capture and storage of CO2 in Denmark even further. The proposed plan aims to ensure clarity in the industry while speeding up the process for capture and storage.

Under the proposed plan, Danish the government outlines a structure for the upcoming CCUS tenders totaling EUR 3.6B (DKK 27B). Rather than dispersing the funds into smaller portions, the proposal consolidates these amounts into two substantial allocations, each respectively accounting for a minimum of 0.9 million tonnes up to at least 1.4 million tonnes of CO2 annually. This will mean that more actors can bid, thus creating greater certainty that carbon capture and storage can deliver its share to meet the CO2 reduction targets. At the same time, plans are being made demanding the projects to be in full operation as early as 2029 instead of 2030.

“The fight against climate change in Denmark, Europe, and the rest of the world requires us to invest in many areas and carbon capture is one of the supporting beams when we have to build all the way up to achieving the climate goals. Therefore, we are also pulling the requirement for full capture closer from 2030 to 2029 to get more CO2 from the air and into the underground faster. The plan must also ensure a clearer framework for the growing industry to ensure the Danish CCS industry’s ability to increase in scale while reducing prices. It may well be that it’s geeky, but it’s in the geekery that things happen,” says Lars Aagard, the Danish Minister for Climate, Energy, and Supply Minister.

Related news: Denmark grants first full-scale CO2 storage permits in the Danish North Sea

For future storage licenses, the government proposes to continue the model with a 20% state ownership, which is already applicable to the three existing licenses. This provides the Danes with a share in the profits when a common underground is made available.

“With this initiative, we are paving the way for our talented Danish companies. By pooling the resources and creating clear framework conditions for carbon capture and storage, we pave the way for a strong Danish industry that not only reduces our climate footprint, but creates growth as well as jobs. We are determined to use our skills and innovation to lead the way in the green transition,” says Morten Bødskov, the Danish Minister for Industry, Business and Financial Affairs.

Additionally, the plan establishes framework parameters for the industry concerning ownership and the regulatory aspects related to CO2 transportation via pipelines. This initiative builds upon the suggestions put forth by the CCS Clusters, a sub cluster of the five Danish Clusters focused on the development and production upscaling of green technologies within the areas of CCS, carbon capture utilization (CCU), Power-to-X, iotechnology, water-technology and energy-islands. One of the notable measures involves the government’s intention to broaden the current regulations governing CO2 transportation. This expansion will encompass all modes of CO2 transport, holding particular significance for transporting CO2 to PtX facilities and for transporting CO2 destined for offshore storage via ports.

To assist in facilitating this, the government will expand the existing rules for the transport of CO2 to include all forms of carbon transport, which is particularly important for the transport of CO2 for use in power-to-X facilities and for CO2 that must be shipped via ports for storage offshore.

Get inspired: From chimney pollution to tomato cultivation

About the proposal

  • The government’s proposal involves merging funds from the CCUS pool and the Green Tax Reform pool into two substantial tenders, respectively amounting to a minimum of 0.9 million and 1.4 million tonnes of CO2.
  • The tenders will encompass a financial scope of roughly EUR 3.6B (DKK 26B) distributed across two sequential rounds. In this structure, approximately EUR 1.4B (DKK 10.5B) and approximately EUR 2.2B (DKK 16.3B) will be allocated over a 15-year period, respectively.
  • There will be a requirement for carbon capture by 2029, but a possibility of capture and storing from 2028.
  • It is expected that the first of the two CCS tenders will be launched in June 2024 and again in June 2024.

For more information visit the Danish Ministry of Energy, Utilities, and Climate’s webpage. (Danish article)

You should consider reading

Carbon capture, storage and utilisation
Green hydrogen


Green Shipping


New publication explores Denmark’s push to decarbonise global shipping

5 December 2023
As climate and energy leaders gather at COP28, a newly launched publication highlights Denmark’s commitment to accelerating the global transition towards climate-neutral shipping.


Climate COP


COP28: New global alliance to advance negative emissions

11 December 2023
It is not enough for all countries to aim for climate neutrality; some must go beyond and become climate-negative. Aimed at achieving this after 2045, Denmark has launched the GONE alliance with like-minded countries.


Climate COP


Climate ministers convene in Denmark to set the course towards COP29

11 March 2024
For the third year running, COP discussions get off to an early start at the Copenhagen Climate Ministerial. This year’s ministerial, hosted by Denmark in cooperation with the former and current COP presidencies of the United Arab Emirates and Azerbaijan, will prepare the path towards a successful COP29 in Baku.




Green hydrogen is Danish hydrogen

19 September 2023
Get a full overview on how hydrogen can produce green fuels for transport and industry, create value for electricity supply and the electricity grid, and deliver heat for district heating - provided the input is green energy.




Green hydrogen derivatives for deep decarbonisation

19 September 2023
Hydrogen is an important enabler for the production of hydrogen derivatives, such as e-methanol, e-ammonia, and e-kerosene, which can be used in industry and transport.