Denmark awards first licenses to explore CO2 storage options on land

Bluenord ASA

20/06/2024 15:56

OSLO, June 20 (Reuters) - Denmark has awarded the first
three licenses to investigate large-scale storage of carbon
dioxide in geological formations on land, the Danish Energy
Agency said on Thursday.
    In neighbouring Germany, onshore CO2 storage was banned last
decade amid fears of gas leaks, but Danish authorities said the
country's subsoil was particularly suitable for CO2 storage that
could help to limit global warming.
    Licenses to explore onshore CO2 storage in Demark were
awarded to three groups: one including Wintershall Dea  WINT.UL 
and INEOS, another including CarbonCuts, a subsidiary of
BlueNord  BNOR.OL , and a third including Equinor  EQNR.OL  and
Orsted  ORSTED.CO .
    Denmark's state-owned fund Nordsofonden will have stakes in
all three. 
    "Carbon storage is vital if we are to achieve our climate
targets, and the Danish subsoil has the necessary qualities
needed to store carbon safely and responsibly," the agency said
in a statement.
    The first CO2 onshore licensing round received bids from a
total of 10 companies, it added. 
    The agency said further studies by the license holders will
be needed to make sure that CO2 storage is safe before permits
to start storage are granted. 
    One potential storage site at Havnso is about 70 kilometres
away from Danish capital, Copenhagen.
    Denmark has previously awarded a few licenses for exploring
CO2 storage in the Danish sector of the North Sea. 
    Germany said in February it planned to change its laws to
allow carbon capture and off-shore storage for certain
industrial sectors as Europe's biggest economy aims to become
carbon neutral by 2045. On-land carbon storage in Germany will,
however, remain banned.


 (Reporting by Nerijus Adomaitis and Nora Bulli
Editing by Christina Fincher)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))