Denmark sets aside $4.2 billion as part of its third fund for carbon capture and storage

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🗞️ Driving the news: Denmark has launched a $4.2 billion fund dedicated to carbon capture and storage (CCS) projects, aiming to reduce its annual emissions by 2.3 million tonnes by 2030
• The fund will cover costs for CO2 capture, transportation, and geological storage over a 15-year period, with the goal of commissioning facilities by 2029

🔭 The context: This is Denmark’s third CCS fund, following previous projects such as the CCUS pool and NECCS pool
• Denmark has also granted licenses for CO2 storage and developed cross-border agreements for geological storage under the seabed

🌍 Why it matters for the planet: CCS technology is critical for capturing CO2 emissions, helping to mitigate the impact of fossil fuels and biogenic sources on global warming
• Denmark’s initiative is a significant step toward climate neutrality by 2050

⏭️ What's next: The tendering process will close in March 2025, with contracts awarded to multiple participants
• Approval from the European Commission is required for state-aid compliance, and first storage operations are expected in the coming years

💬 One quote: "The tendering procedure will ensure that we get the highest CO2 reductions from the funds allocated by politicians" -  Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency

📈 One stat: The CCS fund is expected to reduce Denmark's annual emissions by 2.3 million tonnes of CO2 by 2030, or about 5% of the country’s current total emissions

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