Denmark 28 billion fund to boost CO₂ capture and storage efforts

Copenhagen: In June 2024, Denmark stepped up its climate efforts by launching a Carbon Capture and Storage (CCS) Fund, providing DKK 28.3 billion (about €3.8 billion) over the next 16 years to support the CO2 capture, transport, and storage.

This ambitious fund is designed to help Denmark achieve its climate goals, contributing to a reduction of 2.3 million tonnes of CO2 annually by 2030.

The fund opened for public consultation in June, then the consultation process took place in August. Tender materials were then published in October, with contracts awarded in April 2026 following a competitive bidding process.

The fund is a key part of Denmark’s strategy to reduce CO2 emissions by 70% by 2030 compared to 1990 levels, a target set as part of the country’s broader climate action plan.

The CCS scheme aims to incentivise the development of CO2 capture facilities that can safely store CO2 underground or potentially use it for other purposes (CCU – Carbon Capture and Utilisation). By offering subsidies to companies that can capture and store CO2 from fossil, biogenic, or atmospheric sources, the fund ensures that the process is both cost-effective and scalable.

The competitive bidding process allowed companies to bid on fixed quantities of CO2 capture and storage capacity per year at a price per tonne of CO2 stored.

Several companies were awarded contracts, ensuring maximum participation and competition. Operators have the flexibility to opt-out of the contract if a more profitable business opportunity for CO2 utilisation (CCU) arises.

The fund aligns with Denmark’s wider efforts to promote the long-term use of CO2, including international collaborations for cross-border CO2 transport and storage beneath the seabed. This initiative is also expected to help Denmark meet its obligations under the European Union’s climate goals and contribute to the global effort to curb emissions and mitigate climate change.