A majority of the Danish parliament has decided that carbon capture and storage (CCS) and utilization (CCUS) is to be an important element in achieving Denmark’s climate policy objectives. The decision was a part of the climate agreement of June 2020 and prompted the setting up of funds (the CCUS funds) of DKK 16 billion, which are scheduled for deployment between 2024-2048.
The Danish Energy Agency (DEA) is responsible for the deployment of the CCUS funds. The funds are intended to ensure the capture, transport and storage of 0.4 million tonnes of CO2 per year from 2025 and an additional 0.5 million tonnes of CO2 per year from 2030.
The Danish Energy Agency issued a call for tender, however the tender round was cancelled on 3 June 2022 and the tender notice for the re-tender has now been sent for publication on 9 June. This will once again start the tender process for the first phase of the CCUS pool, which will be Denmark's first support pool for capture, transport and storage of CO2. The deadline for applications for pre-qualification is 7 July 2022.
The Danish Energy Agency has updated the tender material with a view to ensuring that municipally owned waste heat plants can participate in the tender, cf. the political agreement on the CCS strategy.
The contract for financial support will be entered into between the successful bidder and the Danish authorities. The contract contains a number of elements that are interesting for anyone involved in CCS and CCUS, such as the definitions of the operator's overall obligations. Obligations include but are not limited to:
a) establishing a solution that enables the capture of CO2 at the source(s);
b) ensuring transportation of the CO2 to the permanent storage site, including, if relevant, any intermediate storage;
c) ensuring the permanent storage of the CO2 captured:
d) ensuring compliance with the CCS Directive’s requirements as implemented in national law and any other applicable law; and
e) establishing and operating all systems, tools, procedures etc. necessary to document and report accurately the reductions and storage of CO2 achieved and provide such documentation and reporting to the DEA as required by the Contract.
Furthermore the contract contains definitions of the project phases and provisions on time of performance, quality, HSE, IPR, performance guarantees, financial security, confidentiality, payment, non-compliance and remedies and dispute resolution.
WSCO has for many years advised operators and suppliers and contractors within CCS and CCUS and related industries. We also continue to monitor developments in this area and are available for further discussions with interested parties within energy and infrastructure.
