The Danish Energy Agency has opened applications for companies seeking a license to explore the subsurface for CO₂ storage in designated coastal areas of Denmark. Additionally, the agency invites potential applicants to an information meeting on January 15, 2025.
The Danish Energy Agency today opened the fourth licencing round for exploration and use of the subsurface for geological storage of CO2. The tender covers three areas near the Danish coast; Jammerbugt, Lisa and Inez.
Several exploration licences already awarded
The current licencing round for exploration and potential storage of CO2 is not the first of its kind; in February 2023 the Minister of Climate, Energy and Utilities granted three offshore exploration licences for CO2 storage, and in June 2024 three onshore exploration licences at Havnsø, Rødby and Gassum.
In September 2024 a new licencing round opened for the previously tendered area at Thorning, where the received bids are being evaluated.
Facts about CO2 storage
- A licence to explore and use the subsurface for geological storage of CO2 has two main phases; an exploration phase and a storage phase. The exploration phase can last up to 6 years, the purpose of which is to determine through exploration whether the subsurface conditions are suitable for the safe storage of CO2 and how large the storage capacity is. If a storage site is deemed suitable, the licence holder has a priority to apply to store CO2. Any storage licence can last up to 30 years with the possibility of extension. Around 20 years after closing the storage site, the area is returned to the state.
- The current tender covers three coastal areas in Denmark – Jammerbugt, Lisa, and Inez. The areas are among several designated by the Geological Survey of Denmark and Greenland (GEUS) because the geological conditions in these areas are particularly suitable for underground storage of CO2.
- A strategic environmental assessment of the areas has already been carried out to ensure that any storage can take place in an environmentally sound manner. Projects and activities related to exploration and storage, including drilling, etc., must also undergo a specific environmental assessment.
- The tender is part of a number of previous tenders held in Denmark. According to the Agreement on strengthened framework conditions for CCS in Denmark of 20 September 2023, 8 areas were to be published for tender before the end of 2023. The same agreement states that the Danish state, through Nordsøfonden, participates with a 20 percent ownership in all exploration and storage licences.
>> Find out more at the Danish Energy Agency / Energistyrelsen
