The Danish Government announced on Thursday that Denmark has issued its first three licenses to explore large-scale carbon dioxide (CO2) storage in geological formations on land. This initiative marks a significant step in Denmark's strategy to address climate change by utilizing its geological assets for CO2 sequestration. The country's subsoil characteristics make it particularly well-suited for safely storing CO2, a critical component in efforts to mitigate global warming.

In contrast, Germany, Denmark's neighboring country, imposed a ban on onshore CO2 storage over a decade ago due to concerns about potential gas leaks and associated risks. Despite these concerns, Denmark's regulatory bodies and scientific assessments have determined that their geological conditions are favorable for such projects, which could play a pivotal role in reducing atmospheric CO2 levels.

The awarded licenses for exploring onshore CO2 storage have been granted to three groups. The first group includes Wintershall Dea and INEOS, both prominent players in the energy sector. The second group comprises CarbonCuts, a subsidiary of BlueNord, which brings specialized expertise in carbon management. The third license has been awarded to a consortium featuring Equinor, a major energy company, and Ørsted, a leader in renewable energy solutions.

Denmark's state-owned fund, Nordsofonden, will have stakes in all three projects. In a statement, the agency emphasized the importance of carbon storage in achieving climate targets, noting that the Danish subsoil possesses the necessary qualities to store carbon safely and responsibly. The agency also reported that the first CO2 onshore licensing round attracted bids from a total of 10 companies. Additionally, it highlighted that further studies by the license holders will be required to ensure the safety of CO2 storage before any storage permits are issued. One potential storage site at Havnso is approximately 70 kilometers from Copenhagen, Denmark's capital. Previously, Denmark has granted several licenses for CO2 storage exploration in the Danish sector of the North Sea. In February, Germany announced plans to amend its laws to permit carbon capture and offshore storage for specific industrial sectors as it aims to achieve carbon neutrality by 2045. However, onshore carbon storage will continue to be prohibited in Germany.

INEOS Energy's CEO, David Bucknall, emphasized the critical role of permanent CO2 storage sites, both offshore and onshore, in achieving the EU's climate targets and fostering a strong carbon capture and storage (CCS) market. He applauded the awarded Gassum onshore license, underscoring its perfect synergy with INEOS Energy's dual goals: supplying energy solutions during the green transition and leading the way in CCS technology.