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Denmark awards first offshore carbon storage contract

Denmark awards first offshore carbon storage contract

The Danish government has issued three licenses to develop carbon capture and storage technology in its North Sea territorial waters. Photo courtesy of Shell.
Carbon capture and storage technology is being advanced as a tool for countries seeking to create a net-zero economy.Photo courtesy of Shell

February 6 (United Press International) — The Danish government said on Monday it had awarded carbon capture and storage contracts to three major energy companies for the first time, seeking storage technologies.

Denmark has each awarded French company TotalEnergies, German energy company Wintershall and the UK’s INEOS a license to develop large-scale carbon capture and storage projects in Danish waters of the North Sea.


Lars Aagaard, Denmark’s climate, energy and utilities minister, said these marked the first of its kind in the country.

“This is not just a step towards a new green industry in our North Sea – it’s a milestone in our green transformation,” He said. “Building a carbon capture and storage industry means we can do it bigger and better – and achieve our climate goals faster in the process.”

EU member states are working to become climate neutral by 2050. Denmark itself is seeking to reduce its overall greenhouse gas emissions by 70% from 1990 levels and meet half of its energy needs with renewable energy by the end of the decade.

The Danish government estimates that the three projects together could reduce carbon emissions by 13 million tons per year. However, the potential is much greater, with an estimated 22 billion tonnes of storage capacity, “which would be equivalent to 500 to 1,000 years of Denmark’s emissions if we filled it ourselves,” the government said.

Carbon capture and storage (CCS) technology is a growing part of the energy transition, capturing emissions from the power sector and industrial polluters.

Last month, six energy companies, including Wintershall, apply to The Norwegian Petroleum Agency, the national energy regulator, becomes a commercial player in sequestering the potent greenhouse gas carbon dioxide. NPD issued its first offshore carbon storage permits in 2019 at a site near the Troll gas field in the North Sea. The agency believes its North Sea territory has the potential to store more than 80 billion tonnes of carbon dioxide, equivalent to Norway’s 1,000-year emissions.

Carbon captured offshore will be stored in geological formations on the seafloor.

“In September we signed an international carbon transport agreement with Flanders and Belgium, which means they will be able to store carbon emissions underground with us – and we are working to secure more so we can make the most of it potential of our underground,” the Danish minister said.

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