The Danish Energy Agency has selected ten companies to compete for funding under its carbon capture and storage (CCS) initiative, aimed at supporting Denmark’s climate objectives. The DKK 28.7 billion ($4.31 billion) fund is projected to reduce annual CO2 emissions by 2.3 million tonnes starting in 2030.

The shortlisted companies—AffaldPlus Affaldsenergi, ARGO CCS, E.ON Carbon Capture Solutions, Copenhagen ApS, Energnist CaptureCo, Fjernvarme Fyn Fangst, Gaia ProjectCo P/S, HOFOR DSS SPV, Kredsløb Holding, Ørsted Bioenergy & Thermal Power, and Aalborg Portland—were chosen from 16 applicants in March based on their expertise in CCS or major infrastructure projects. Ørsted Bioenergy & Thermal Power previously secured a 20-year contract for Denmark’s first full-scale CCS project in 2023.

Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency, stated: “We are well on our way to establishing a market for carbon capture and storage in Denmark. And that is important, because it holds enormous potential for addressing the climate challenge. There is strong interest in the tender, and we have now identified the 10 companies that will be prequalified and get the opportunity to apply for funding.”

The CCS fund will finance the capture, transportation, and geological storage of CO2 from fossil, biogenic, or atmospheric sources over a 15-year contract period. Payments will be made per tonne of CO2 captured and stored, with capture required within Denmark to count toward national climate targets. Storage can occur in Denmark or abroad.

Baggesgaard Hansen emphasized: “I am pleased that so many can see the opportunities in CCS in Denmark and want to contribute to reaching our climate goals.” He noted that funds will only be disbursed once CO2 is successfully stored, ensuring measurable emission reductions.

The prequalified companies must submit detailed project proposals and bids by August 26, 2025. A negotiation phase with the Danish Energy Agency will follow, with final offers due by December 17, 2025. Contracts are expected to be awarded in April 2026, pending state aid approval from the European Commission.

Denmark’s first CO2 storage permit was granted in late 2022 to INEOS E&P and Wintershall Dea for the Greensand Pilot Injection Project. In March 2023, the project achieved the country’s first CO2 injection in the North Sea.

This initiative supports Denmark’s efforts to meet domestic energy consumption needs sustainably, advancing its climate goals through innovative carbon management technologies.