CCS Policy developments in Denmark
A basic prerequisite for achieving CO2 reductions through CCS is the existence of a coherent value chain for capture, transport and storage of CO2. Without capture, there is no basis for storage facilities and without storage facilities, captured CO2 cannot be stored.
With the Climate agreement for energy and industry etc. from 22nd of June 2020 nine out of ten parties in the Danish parliament noted that CCUS is an important tool in the transformation of the production industry and fulfillment of the climate policy goals, but is not an expression of diminished ambitions in relation to it green transition. The parties agree to establish a technology-neutral, market-based pool to contribute to advance technology and deliver greenhouse gas reductions through 2030 and beyond. DKK 202 million is set aside. in 2024, DKK 406 million. DKK in 2025, 406 in 2026, 626 million. DKK in 2027 and 626 mill. DKK in 2028 and 815 million. DKK in 2029 and onwards (calculated in 2020 prices and including derived tax losses), which is estimated to deliver a CO2e reduction effect of 0.4 mill. tonnes of CO2e in 2025 and 0.9 mill. Ton CO2e in 2030. The support runs for 20 years.
In June 2021 a political agreement was reached on the following principles for storing CO2 in Denmark (first part of CCS-strategy):
- A basis must be created for safe and environmentally sound storage of CO2
- Denmark must be able to import and export CO2 to and from abroad
- Further investigations of new storage sites in Denmark must be initiated
In autumn 2021 the government will prepare a proposal for the next parts of the strategy including the 16 bill. DKK subsidy scheme.