The case addresses the challenge of industrial CO2 emissions, specifically from biomass-fired combined heat and power (CHP) plants in Denmark. While biomass is considered renewable, capturing and storing its CO2 emissions is essential to achieving true carbon negativity. Additionally, Denmark lacks the geological conditions for large-scale CO2 storage, creating a need for cross-border carbon storage infrastructure. The broader challenge is reducing Europe’s industrial CO2 footprint while enabling hard-to-abate sectors to decarbonize efficiently and permanently.

The solution is a cross-border carbon capture and storage (CCS) agreement between Danish energy company Ørsted and Norway’s Northern Lights JV (Equinor, Shell, TotalEnergies). Under a 20-year agreement signed in 2023, Ørsted will capture 430,000 tonnes of CO2 annually from two Danish CHP plants and ship it to the Northern Lights terminal in Øygarden, Norway. There, the CO2 will be stored in tanks, then transported via pipeline to a subsea geological reservoir in the North Sea. This is the world’s first commercial agreement for international CO2 transport and storage by ship.

The project enables permanent storage of 430,000 tonnes of CO2 annually starting in 2025–2026, supporting Ørsted’s climate targets and demonstrating the viability of cross-border CCS as a service. For Norway, the agreement contributes to the commercial scaling of the Northern Lights infrastructure, which targets 5 million tonnes of storage capacity by 2028. The project creates value by enabling carbon-negative energy production, accelerating CCS deployment in Europe, and monetizing Norway’s storage potential. No payback time is disclosed, but long-term value is created through emission reductions and regulatory compliance.