The Danish Energy Agency (DEA) has received two applications from companies interested in exploring the potential for storing carbon dioxide (CO2) in the subsurface of Denmark’s nearshore areas
These applications come after the DEA opened a licensing round on January 9, 2025, to explore CO2 storage in specific nearshore areas offshore Denmark, with the application deadline set for March 6, 2025.
Denmark’s CO2 storage exploration initiative
The companies that want to explore these areas for CO2 storage are CarbonCuts A/S and the partnership of TotalEnergies EP Danmark A/S and Mitsui & Co. Ltd.
These companies will undertake detailed assessments of the geological conditions in the Inez, Lisa, and Jammerbugt offshore areas if granted the necessary licences. This exploration aims to determine whether these areas can be safely and effectively used for CO2 storage, a crucial step in Denmark’s efforts to combat climate change.
Denmark is considered a good location for CO2 storage due to its favourable geological conditions. The country has several subsurface areas suitable for safely storing CO2 beneath the surface.
These areas have been highlighted by the National Geological Survey of Denmark and Greenland (GEUS), which has conducted extensive research into the country’s geological features. This exploration is part of Denmark’s broader strategy to reduce its carbon emissions and contribute to global efforts to limit climate change.
The importance of CO2 storage in combating climate change
CO2 storage is increasingly recognised as essential to the global fight against climate change.
The process involves capturing CO2 emissions from large industrial sources, such as incineration plants or factories, and storing it underground to prevent it from being released into the atmosphere.
By reducing the concentration of CO2 in the air, CO2 storage plays a vital role in achieving emission reduction targets and mitigating the effects of global warming.
The exploration phase of these projects will be crucial in determining the viability of CO2 storage in the selected areas. Once an exploration licence is granted, the licensee will have up to six years to conduct thorough geological studies, possibly extending the exploration period to ten years.
If the geological conditions are suitable, the companies can apply for a storage permit to store CO2 in the subsurface for up to 30 years.
This storage period can also be extended if necessary. After the storage phase concludes, the site will transition into a closure phase, during which the stored CO2 will continue to be monitored to ensure that it remains securely contained.
Environmental considerations
The DEA emphasises the importance of ensuring that storage activities are carried out environmentally safely.
To this end, all exploration activities, such as drilling wells, must undergo environmental screenings. Any proposed CO2 storage sites will also be subject to a full Environmental Impact Assessment (EIA) to evaluate potential risks and impacts on the surrounding environment.
The current licensing round is a significant step in Denmark’s ongoing commitment to tackling climate change.
It is the first time that the nearshore areas of Inez, Lisa, and Jammerbugt have been included in a licensing round for CO2 storage exploration. This initiative is part of Denmark’s broader regulatory framework for carbon capture and storage (CCS), which aims to expand the country’s capacity for CO2 storage and help meet its emission reduction goals. Under the terms of an agreement signed in September 2023, the Danish state, through Nordsøfonden, will hold a 20% stake in all exploration and storage licences.
This licensing round follows previous rounds that have resulted in three exploration licences for CO2 storage in the Danish part of the North Sea and three onshore exploration licences.
The success of these projects has set the stage for further advancements in Denmark’s CCS capabilities, reinforcing the country’s position as a leader in the global effort to address climate change.
