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Released January 24, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has given the green light to Denmark's 1.1 billion-euro (US$1.2 billion) funding scheme for carbon capture and storage (CCS) projects.
The scheme will kickstart a major CCS push in Denmark and help reduce its greenhouse gas emissions by 70% by 2030 compared to the 1990 level. Funding will be awarded via a competitive tendering procedure this year and is open to companies in "any industrial sectors, including the waste and energy sectors." The scheme will offer 20-year contracts with the goal of capturing and storing an annual minimum of 0.4 million tonnes of carbon dioxide (CO2) from 2026--a total of 8 million tonnes over the 20-year period. The maximum sum of aid provided can be up to 55 million euro (US$59.5 million) per annum. The goal of the scheme is to reduce CO2 emissions that are released in the atmosphere and achieve deeper decarbonisation of industrial processes. The EC found that the Danish plan contributes to the achievement of Denmark's climate targets and the European Union's (EU's) strategic objectives under the European Green Deal, in particular the 2050 climate neutrality goal. Europe has a an intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030.
Key reasons cited by the EC for approving the scheme included that Denmark had demonstrated that the aid could deliver overall CO2 reductions, "not merely displacing the emissions from one sector to another". It also noted that the scheme has an "incentive effect" as the potential beneficiaries "would not carry out the investments and engage in a CCS project without the public support."
"This 1.1 billion-euro scheme will enable Denmark to capture and store a significant amount of CO2, preventing its release into the atmosphere," said Margrethe Vestager, executive vice-president in charge of competition policy. "It will help Denmark achieve its ambitious target of climate neutrality by 2050 at the latest, in line with the European Green Deal objectives, while ensuring that competition distortions are kept to the minimum."
Last October, Industrial Info reported on Europe's first-ever trial of CCS in the North Sea, which is being spearheaded by Denmark and Belgium. The Greensand project, jointly led by INEOS Group AG (London, England) and Wintershall (Ludwigshafen, Germany) will allow for CO2, captured by INEOS from its Zwijndrecht refinery in Belgium, to be shipped via the port of Antwerp to INEOS' Nini West oil platform 200 kilometers (km) off the west coast of Denmark, where it will be injected as a liquid into the former oil field, 1.8 km below the seabed surface. Greensand involves a consortium of 23 specialized companies, research centers, institutions and logistics partners and has the goal of storing 1.5 million tonnes of CO2 per year by 2025 and up to 8 million tonnes of CO2 per year by 2030.
Industrial Info is also tracking plans by Project Greensand consortium member Aalborg Portland Cement, which is aiming to build a CCS system at its Rordal, North Jutland, cement plant in Denmark. Captured CO2 will be transported to Greensand storage sites.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The scheme will kickstart a major CCS push in Denmark and help reduce its greenhouse gas emissions by 70% by 2030 compared to the 1990 level. Funding will be awarded via a competitive tendering procedure this year and is open to companies in "any industrial sectors, including the waste and energy sectors." The scheme will offer 20-year contracts with the goal of capturing and storing an annual minimum of 0.4 million tonnes of carbon dioxide (CO2) from 2026--a total of 8 million tonnes over the 20-year period. The maximum sum of aid provided can be up to 55 million euro (US$59.5 million) per annum. The goal of the scheme is to reduce CO2 emissions that are released in the atmosphere and achieve deeper decarbonisation of industrial processes. The EC found that the Danish plan contributes to the achievement of Denmark's climate targets and the European Union's (EU's) strategic objectives under the European Green Deal, in particular the 2050 climate neutrality goal. Europe has a an intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030.
Key reasons cited by the EC for approving the scheme included that Denmark had demonstrated that the aid could deliver overall CO2 reductions, "not merely displacing the emissions from one sector to another". It also noted that the scheme has an "incentive effect" as the potential beneficiaries "would not carry out the investments and engage in a CCS project without the public support."
"This 1.1 billion-euro scheme will enable Denmark to capture and store a significant amount of CO2, preventing its release into the atmosphere," said Margrethe Vestager, executive vice-president in charge of competition policy. "It will help Denmark achieve its ambitious target of climate neutrality by 2050 at the latest, in line with the European Green Deal objectives, while ensuring that competition distortions are kept to the minimum."
Last October, Industrial Info reported on Europe's first-ever trial of CCS in the North Sea, which is being spearheaded by Denmark and Belgium. The Greensand project, jointly led by INEOS Group AG (London, England) and Wintershall (Ludwigshafen, Germany) will allow for CO2, captured by INEOS from its Zwijndrecht refinery in Belgium, to be shipped via the port of Antwerp to INEOS' Nini West oil platform 200 kilometers (km) off the west coast of Denmark, where it will be injected as a liquid into the former oil field, 1.8 km below the seabed surface. Greensand involves a consortium of 23 specialized companies, research centers, institutions and logistics partners and has the goal of storing 1.5 million tonnes of CO2 per year by 2025 and up to 8 million tonnes of CO2 per year by 2030.
Industrial Info is also tracking plans by Project Greensand consortium member Aalborg Portland Cement, which is aiming to build a CCS system at its Rordal, North Jutland, cement plant in Denmark. Captured CO2 will be transported to Greensand storage sites.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
