The Danish Energy Agency hopes to reduce its carbon footprint by selecting 10 companies to compete for DKK 28.7 billion in funding for Carbon Capture and Storage (CCS) projects
The funding initiative will cut Denmark’s CO₂ emissions by 2.3 million tonnes annually from 2030.
Strong interest in CCS funding
The funding competition comes after the call for applications was issued in March 2025, where 16 companies applied to be prequalified.
As the tender framework stated, only 10 companies could move forward. These selected organisations now have the opportunity to submit project proposals for CCS initiatives that aim to capture and permanently store carbon emissions.
This funding round is part of Denmark’s bigger plan to reach its national climate targets. The CCS fund is structured to support projects that deliver tangible environmental benefits. Payments from the fund will be made based on the volume of CO₂ captured and stored, ensuring that the funding directly contributes to emission reductions.
Prequalified companies
The Danish Energy Agency has chosen companies with experience in carbon capture, storage, or large-scale infrastructure development. The prequalified companies, listed alphabetically, are:
- AffaldPlus Affaldsenergi A/S (Næstved Affaldsenergi A/S)
- ARGO CCS A/S
- E.ON Carbon Capture Solutions Copenhagen ApS
- Energnist CaptureCo A/S
- Fjernvarme Fyn Fangst A/S
- Gaia ProjectCo P/S
- HOFOR DSS SPV A/S
- Kredsløb Holding A/S
- Ørsted Bioenergy & Thermal Power A/S
- Aalborg Portland A/S
These companies will now enter the next stage of the competition, where they will prepare detailed project descriptions and submit initial offers for funding consideration.
Next steps in the tender process
The competition will progress through several phases. Prequalified companies must submit their Initial Offers (INDO) by August 26, 2025. A negotiation phase between each company and the Danish Energy Agency will follow this. Final and Binding Offers (BAFO) are expected to be due by December 17, 2025, with contract awards planned for April 2026.
The CCS fund is designed to stimulate investment in green technologies and establish a long-term market for carbon capture and storage within Denmark. It is part of the Danish government’s commitment to developing innovative climate solutions.
Storing CO₂ domestically or abroad
Under the fund’s guidelines, only CO₂ captured within Denmark will count toward the country’s climate targets. However, the carbon can be geologically stored domestically or internationally, provided it meets the required safety and environmental standards. This flexibility encourages rapid deployment of CCS projects while ensuring measurable climate benefits.
Awaiting EU approval
Before the funding can be fully implemented, the CCS initiative must receive state aid approval from the European Commission. This regulatory step ensures that the financing complies with EU competition rules and state aid regulations.
Once approved, the initiative is expected to play a critical role in helping Denmark meet its climate obligations while supporting technological innovation and job creation in the green energy sector.
