Denmark: 16 Applicants Seek Share of $4.1B CCS Fund
March 27, 2025
Danish Energy Agency has reported that 16 companies have placed their bid for share of the country’s new carbon capture and storage (CCS)-dedicated fund, which amounts to $4.1 billion.
A maximum of 10 companies can participate in the bidding, and in order to apply for funding, applicants must first be prequalified.
The Danish Energy Agency will now assess the applications in order to select 10 companies out of 16 that applied.
According to the agency, it will announce which companies have been pre-qualified to submit bids before summer, which will then proceed to further negotiation.
The funds will be paid out in 2029-2044.
"We are very pleased with the great interest, and that so many players see opportunities in contributing to the green transition through carbon capture and storage. This shows that we are well on our way to establishing a market for CCS in Denmark.
“It is an important step to achieve Denmark's climate goals. Now, it is our task at the Danish Energy Agency to continue the work so that the CCS fund can be converted into concrete CO2 reductions," said Peter Christian Baggesgaard Hansen, Deputy Director General at the Danish Energy Agency.
The selection will be based on a professional assessment of the applicants' described experiences with planning and/or operation of CCS activities or major construction projects.
The deadline for submission of initial bids (INDO) is August 26, 2025, after which the Danish Energy Agency can enter into negotiations with the bidders. T
The deadline for submission of final and binding bids (BAFO) is expected to be on December 17, 2025. The Danish Energy Agency expects to award contracts in April 2026. The implementation of the CCS fund is subject to state aid approval from the European Commission.
The CCS pool is the third fund administered by the Danish Energy Agency with state aid for CO2 capture and storage. In total, approximately $5.5 billion has been allocated.
The first tender from the CCUS fund was won by Ørsted, which will capture and store 430,000 tonnes of CO2 annually from 2026 and 20 years ahead.
The tender from the NECCS fund was completed in May 2024, when the Danish Energy Agency contracted three companies to capture and store 160,350 tonnes of biogenic CO2 annually from 2026 through 2032.
