The Danish Government and a broad political majority have agreed on a new deal for capture, transport and storage of CO2 in Denmark, allocating DKK 16 billion to support the development of a Danish CCS industry.
CCS and CCU are recognized as important tools in combatting climate change and realizing the Danish climate targets of a 70 percent reduction in greenhouse gases by 2030 and climate neutrality by 2050. The news of a comprehensive strategy that promotes new infrastructure and ensures regulation of capture, transport, storage and usage of CO2 in Denmark on market-based terms puts action behind those words and ambitions, and positions Denmark on track to delivering large-scale CO2 reduction via CCS by 2025.
For decades, oil has been pumped up from the North Sea. That must become a thing of the past. Instead, we must capture CO2 and store it in the same underground. It is precisely this technology that plays an important role in our 70 percent target. Capturing and storing CO2 can reduce emissions in some of the places where it has been very difficult so far. For example, in relation to waste incineration and cement production. The potential is enormous, and therefore it is important for us to kick start the market nowDan jørgensen, minister for climate, energy and utilities
The agreement translates into an pool of a total of DKK 16 billion. The funds will be divided into two parts. The first part must be implemented in the short run to kickstart the market. The money can be applied for already in 2022 by CO2 emitters in hard-to-abate industries such waste incineration, HPPs and manufacturing. The support will mean that emitters can invest in the plants that must be established to capture the CO2 they emit and contribute to reach the Danish climate target in 2030.
Danish shipping companies like ourselves are ready to deliver on the transportation needed to unlock the full value of CCS. At Dan-Unity CO2 we are excited by the recent developments and support for CCS in Denmark, and look forward to enabling a zero-emission future together with our partners in the CCS industry.