Dec 5, 2025
Denmark has extended the deadline for submitting bids for a share of the $4.59 billion carbon capture and storage project.
The Danish Energy Agency has extended the deadline for its carbon capture and storage (CCS) tendering process, allowing companies interested in accessing part of the DKK 28.7 billion ($4.59 billion) funding aimed at aiding Denmark's climate neutrality goals.
Originally announced last year, the CCS fund was intended to cover expenses related to the capture, transportation, and geological storage of CO2 from fossil, biogenic, or atmospheric sources over a 15-year period. The subsidies included a stipulation for the commissioning of capture facilities by December 1, 2029, with full capture and storage expected to commence in 2030.
This funding is projected to lower Denmark's annual carbon emissions by 2.3 million tonnes starting in 2030, which is roughly 5% of the nation’s current yearly emissions. The deadline for final bids related to the DKK 28.7 billion fund has been shifted from December 17, 2025, to January 7, 2026.
The Danish Energy Agency indicated that the delay is due to an ongoing evaluation of a proposed bill intended to clarify energy taxation regulations for CO2 capture. This bill aims to create equitable conditions for companies engaged in CO2 capture and its subsequent geological storage.
Once approved, the bill is set to take effect on January 1, 2026. Consequently, the new deadline for submitting final bids for CO2 capture and storage funding will be January 7, 2026, allowing bidders to prepare their proposals in accordance with the updated legislation.
Nevertheless, the anticipated date for contract awards is expected to remain in April 2026. Securing state aid approval from the European Commission is essential for the implementation of the funding for CO2 capture and storage.
Originally announced last year, the CCS fund was intended to cover expenses related to the capture, transportation, and geological storage of CO2 from fossil, biogenic, or atmospheric sources over a 15-year period. The subsidies included a stipulation for the commissioning of capture facilities by December 1, 2029, with full capture and storage expected to commence in 2030.
This funding is projected to lower Denmark's annual carbon emissions by 2.3 million tonnes starting in 2030, which is roughly 5% of the nation’s current yearly emissions. The deadline for final bids related to the DKK 28.7 billion fund has been shifted from December 17, 2025, to January 7, 2026.
The Danish Energy Agency indicated that the delay is due to an ongoing evaluation of a proposed bill intended to clarify energy taxation regulations for CO2 capture. This bill aims to create equitable conditions for companies engaged in CO2 capture and its subsequent geological storage.
Once approved, the bill is set to take effect on January 1, 2026. Consequently, the new deadline for submitting final bids for CO2 capture and storage funding will be January 7, 2026, allowing bidders to prepare their proposals in accordance with the updated legislation.
Nevertheless, the anticipated date for contract awards is expected to remain in April 2026. Securing state aid approval from the European Commission is essential for the implementation of the funding for CO2 capture and storage.