Great interest in Denmark’s CCS fund: 16 companies want to apply

Tuesday was the deadline to apply for pre-qualification to bid for Denmark’s new CCS fund, and there is great interest. CCS stands for Carbon Capture and Storage, and 28.7 billion Danish kroner including VAT (in 2025 prices) has been allocated for the fund. The money will be paid out in 2029-2044.

The Danish Energy Agency has received 16 applications from prospective companies applying for aid from the CCS fund.

"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," says Peter Christian Baggesgaard Hansen, Deputy Director General at the Danish Energy Agency.

The Danish Energy Agency will now review the applications and determine whether the applicants meet the conditions in the tender material. If more than 10 prequalification applications meet the conditions, the Danish Energy Agency will select the 10 most suitable candidates, as the tender specifications set a ceiling on the number of prequalified applicants.

The Danish Energy Agency expects, before summer, to be able to announce which companies have been pre-qualified to submit bids and can thus participate in future negotiation. 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 the 26^th of August 2025, after which the Danish Energy Agency can enter into negotiations with the bidders. The deadline for submission of final and binding bids (BAFO) is expected to be the 17^th of December 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.

An important contribution to reaching climate goals
Carbon capture and storage is considered an important tool for meeting climate targets. The CCS fund is estimated to help reduce Denmark's annual CO₂ emissions by 2.3 million tonnes from 2030. This corresponds to around five percent of Denmark's total current emissions in one year.

The fund was designed to maximise competition for aid to achieve the greatest possible CO₂ reductions at the lowest possible cost. The aid is paid out per tonne of CO₂ stored. The tender process will be carried out as a negotiated procedure, with market players bidding with a fixed amount per year and price per tonne of CO₂ they will capture and store. Aid from the fund may be allocated to multiple bidders.

The tender material is in English, and all communication between potential bidders and the Danish Energy Agency about the tender must happen via the tender system “Digitale Udbud (EU Supply)”. This is to ensure compliance with the principles of equal treatment and transparency in Danish procurement law. Due to the same considerations, the Danish Energy Agency cannot provide detailed information about the tender until all information has been made available on the portal.

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FACTS
DKK 28.7 billion for carbon capture and storage

• The CCS pool is the third fund administered by the Danish Energy Agency with state aid for CO₂ capture and storage. DKK 28.7 billion including VAT (in 2025 prices) has been allocated to this pool. In total, approximately DKK 38 billion has been allocated.
• The first tender from the CCUS fund, which was worth approximately DKK 8 billion, was won by Ørsted, which will capture and store 430,000 tonnes of CO₂ annually from 2026 and 20 years ahead. Ørsted already expects to capture and store CO₂ from 2025.
• 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.