10 companies selected to compete for Denmark’s CCS Fund with DKK 28.7 billion for Carbon Capture and Storage

In March, the Danish Energy Agency received 16 applications from companies applying to be prequalified to compete for Denmark’s CCS fund. As outlined in the tender documents, a maximum of 10 companies can be prequalified to participate in the tender process. The agency has identified the selected companies.

“We are well on our way to establishing a market for carbon capture and storage in Denmark. And that is important, because it holds enormous potential for addressing the climate challenge. There is strong interest in the tender, and we have now identified the 10 companies, that will be pregualified and get the opportunity to apply for funding. I am pleased that so many can see the opportunities in CCS in Denmark and want to contribute to reaching our climate goals,” says Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency.

The Danish Energy Agency has prequalified the following 10 companies (in alphabetical order) to apply for funding from the CCS fund for carbon capture and storage:

• AffaldPlus Affaldsenergi A/S (Næstved Affaldsenergi A/S)
• ARGO CCS A/S
• E.ON Carbon Capture Solutions Copenhagen ApS
• Energnist CaptureCo A/S
• Fjernvarme Fyn Fangst A/S
• Gaia ProjectCo P/S
• HOFOR DSS SPV A/S
• Kredsløb Holding A/S
• Ørsted Bioenergy & Thermal Power A/S
• Aalborg Portland A/S

The Danish Energy Agency has selected the 10 companies based on their experience with carbon capture and storage projects and activities, or with major infrastructure projects.

Funding paid per tonne of CO₂ stored
Funding will be paid out per tonne of CO₂ captured and stored. To be included in Denmark’s climate targets, the CO2 must be captured within the country. The CO₂ can be geologically stored either in Denmark or abroad.

“Carbon capture and storage is one of several tools we can use to reduce Denmark’s CO₂ emissions and move closer to our climate goals. For every tonne of CO₂ we remove from the atmosphere and store underground, we reduce Denmark’s climate impact. The fund is designed to ensure actual reductions, as the money will only be paid out once the CO₂ is stored,” says Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency.

Carbon Capture and Storage (CCS) is a set of technologies that can capture, transport, and geologically store climate-damaging CO₂ safely and responsibly, preventing it from being released into the atmosphere and contributing to global warming.

In the next phase, the prequalified companies can submit detailed project descriptions and bids. The deadline for submission of initial offers (INDO) is August 26 2025. This will be followed by a negotiation phase between the Danish Energy Agency and the bidders. Final and binding offers (BAFO) are expected to be due by December 17 2025. Contract awards are planned for April 2026. The implementation of the CCS fund is subject to state aid approval from the European Commission.

Find more information about the CCS Fund on the Danish Energy Agency's website.