Two companies want to store CO2 in the Danish subsurface

On January 9th 2025, the DEA opened a licensing round for exploration in the subsurface in certain nearshore areas offshore Denmark. The application deadline was 6^th of March at 12 midday and the DEA has received two applications.

“Denmark have good geological conditions and is an attractive place to explore for CO₂ storage. The interest confirms it and the two applications, the DEA have received now. CO₂ storage is a very important part of the solution in the climate challenges we are in the middle off and something we all will benefit from. Furthermore, Denmark have the necessary framework to ensure timely CO₂ storage – and in a manner that is safe for nature, and environment” says Head of CO₂-storage (CCS) in DEA, Henrik Sulsbrück.

Applications for licence for exploration and use of the subsoil for geological CO₂ storage in the three nearshore areas are from:

• CarbonCuts A/S
• TotalEnergies EP Danmark A/S og Mitsui & Co. Ltd.

If licences are granted, the subsurface will be thoroughly explored to ascertain whether it can be safely used to store CO₂ in an environmentally sound manner.

The areas are shown on the map.

In the coming time, the DEA will read through the applications and evaluate the technical and financial capacity of the applicants, and the work programmes they have offered in their applications. Before granting a licence, the minister for climate, energy and utilities, Lars Aagaard, must present a report to the Climate, Energy and Utilities Committee of Parliament, describing the intended licences.

Great potential for CO₂ storage in Denmark

The Danish subsurface contains several areas with good conditions for storing CO₂. Three Danish nearshore areas have earlier been identified as potentially suited for safe storage of CO₂ deep below the surface.

The purpose is to store the CO₂, captured from chimneys of incineration plants or large industrial plants. which emit large amounts of greenhouse gasses, since these gasses contribute to rising temperatures and climate change. CO₂ capture and storage is, along with other reductions in greenhouse gas emissions, an important means to reduce the amount of CO₂ in the atmosphere and reach Danish reduction targets.

What happens after the licence is granted?

An exploration licence is initially granted for up to six years, with the possibility of extension up to a total of ten years. If the area is shown to be suitable for environmentally safe storage of CO₂, the licensee can apply for a storage permit. This permit can have a duration of up to 30 years, with the possibility of extension. After this period, the project will transition to a closure phase, where the storage site is closed and CO₂ in the subsurface is subsequently monitored. The projects are subject to the environmental impact assessment act, and activities during the exploration phase, such as wells, must undergo environmental screenings, while a potential storage site will have to undergo a full environmental impact assessment (EIA).

FACT: CO₂ storage

• Three nearshore areas offshore have been opened for applications. The areas are amongst several areas identified by the National Geological Survey of Denmark and Greenland (GEUS) as having geological conditions that are particularly well suited for storage of CO₂ in the subsurface.
• A strategic environmental assessment (SEA) has been made, to ensure that environmentally safe storage is possible. Projects and activities in connection with exploration and storage must also undergo relevant environmental assessments.
• The application window opened on January 9^th 2025, and it is the first time these areas are part of a licence round.
• According to the agreement on improved regulatory framework for CCS in Denmark of September 20^th 2023, a licensing round for nearshore exploration licences was to be opened by the end of 2023. The same agreement stipulates that the state, through Nordsøfonden, participates with a share of 20 percent in all exploration and storage licences.
• Previous licensing rounds have resulted in three exploration licenses in the Danish part of the North Sea and three onshore. More information about these can be found in press releases of February 6th 2023 and June 24th 2024. In addition, DEA process an applications for a fourth licence on land.