Danish tender for CO₂ capture and storage enters next phase

On Tuesday August 26^th 2025, the deadline expired for submitting initial bids for the Danish DKK 28.7 billion CO₂ Capture and Storage funding scheme. The tender process is now entering its next phase on the way towards converting the scheme into real CO₂ reductions. Eight bidders have submitted an initial bid.

“CO₂ capture and storage is an important tool to help tackle climate challenges and achieve Denmark’s climate targets. For every ton of CO₂ we remove from the atmosphere, we reduce Denmark’s climate impact. The potential is enormous, and it is therefore encouraging that there is still great interest in participating in the tender. There is still some way to go before final and binding bids are on the table, but today marked another milestone along the way,” says Peter Christian Baggesgaard Hansen, Deputy Director General of the Danish Energy Agency.

In May, the Danish Energy Agency announced the 10 companies prequalified to apply for the CCS scheme. The applicants were selected based on their experience with CO₂ capture and storage projects and large-scale infrastructure projects. No further details are provided about the initial bids in consideration of the ongoing tender process. The expected deadline for submitting final bids is December 17^th 2025.

Support is paid per ton of CO₂ stored
To receive support from the scheme, CO₂ capture must take place in Denmark, so that the reductions count towards Denmark’s climate accounts and contribute to meeting Danish climate targets. Storage in the subsoil may take place either in Denmark or abroad. Support will only be paid once it has been documented that the CO₂ has been stored.

The Danish Energy Agency expects to be able to award contracts in April 2026. Implementation of the CCS scheme is subject to state aid approval from the European Commission.

Find more information on CO₂ capture and storage on the Danish Energy Agency’s website.