Wedoany.com Report-Oct 16, The Danish Energy Agency has launched the tendering procedure for its third fund for carbon capture and storage (CCS) projects, with DKK 28.7 billion ($4.2 billion) available for interested parties to help Denmark in its path to climate neutrality.

The CCS Fund will cover the costs of capture, transportation and geological storage of fossil, biogenic or atmospheric CO2 over a 15-year contract period, with the subsidies including a requirement for the commissioning of capture facilities by December 1, 2029, and full capture and storage from 2030.

Overall, it is estimated that the fund will reduce Denmark’s annual carbon emissions by 2.3 million tonnes from 2030, which corresponds to around 5% of the country’s total current emissions over a year.

According to the Danish Energy Agency, the fund has been designed to ensure maximum competition for funding to achieve the highest possible carbon reductions at the lowest possible cost, with the subsidy to be paid per tonne of CO2 stored.

The tendering procedure will be carried out by negotiation, in which market players bid a fixed amount of CO2 per year and a price per tonne they will capture and store. The deadline to apply to be pre-qualified to participate in the tendering procedure is March 25, 2025, at 13:00.