New law paves the way for Nordsøfonden’s participation in licences for CO₂ storage

Source: press release, 22 December 2022

CEO of Nordsøfonden, Birgitta Jacobsen
CEO of Nordsøfonden, Birgitta Jacobsen (photo: Nordsøfonden)

The Danish Parliament has passed the Bill L6 “Act amending the Act on Nordsøenheden and Nordsøfonden”. This paves the way for Nordsøfonden’s participation in all future licences for CO2 storage in Denmark.

Birgitta Jacobsen, CEO of Nordsøfonden, says, “For Nordsøfonden, today is a milestone. We are proud to manage the state’s participation in the coming licences for CO2 storage. Now we have the legal basis to participate in the licences – a task that we look forward to with high expectations. Storing CO2 underground has the potential to reduce our COemissions to the atmosphere considerably. Thus, CCS (carbon capture and storage) together with the green transition can make a significant contribution to achieving the Danish climate goals. Moreover, with its expected storage capacity and central location, Denmark has the potential to become a European hub for carbon storage.”

In August 2022, the Danish Energy Agency initiated the first tender round for CO2 storage licences and received two applications. The Danish Energy Agency expects to issue these licences at the beginning of 2023. In the first tender round, it was possible to apply for licences in the Danish area of the North Sea. Later on, a tender round for areas onshore and near shore will be initiated. Nordsøfonden will participate with 20% share in the first round licences. The political parties behind the agreement “Framework conditions for CO2 storage in Denmark” of 21 June 2022 will, in 2023, after the first tender round assess whether the state’s participation in future licences should be higher.

“The market for CO2 storage in Denmark is currently immature, and there is a requirement for a consistent partner who can manage the Danish states interests and secure income for Denmark. Nordsøfonden has the requisite competencies and valuable experience in commercial utilisation managing Denmark’s subsurface resources. Furthermore, we already have experience as a facilitating partner, across all licences. We wish to help the creation of a new business area for Denmark that reduces Denmark’s CO2 emissions,” says Birgitta Jacobsen.

Nordsøfonden and Nordsøenheden were established by law in 2005. The law was previously amended in 2014, when Nordsøfonden was made an independent state company (SOV) with its own board.