Denmark has made historical past with the biggest authorities procurement of sturdy carbon dioxide removing (CDR), totaling nearly $24 million (Dkr 166 million). The Danish Vitality Company has awarded contracts to a few firms for brand new CCS (CO2 Seize and Storage) initiatives, marking the completion of the fund for adverse emissions (NECCS fund).
These initiatives will make sure the seize and storage of 160,350 tonnes of CO2 yearly from 2026 to 2032. That is equal to the CO2 absorption of round 16,000 hectares of forest per yr.
Denmark’s Carbon Seize Coup
The settlement, the second-largest of its sort globally, entails buying 1.1 million tons of durable carbon removal from three firms: BioCirc, Bioman ApS, and Carbon Seize Scotland. The most important CDR deal is between Microsoft and Ørstedinvolving the acquisition of two.76 million metric tons of removing credit.
BioCirc CO2 ApS and Bioman ApS have secured contracts for CO2 seize and storage, whereas Carbon Seize Scotland Restricted is anticipated to finalize its contract quickly.
The profitable bidding course of signifies market curiosity in capturing and storing biogenic CO2 from biomass.
All three initiatives meet tender necessities and exhibit the capability for CO2 seize, transport, and storage. They’re anticipated to advance and mature the CCS worth chain in Denmark, with plans to retailer CO2 regionally.
Every undertaking has totally different help ranges and can seize various quantities of CO2. Collectively, they’ll seize and retailer 160,350 tonnes of biogenic CO2 yearly ranging from 2026 till the tip of the contract interval in 2032. Help will probably be offered upon affirmation of everlasting underground storage of the captured CO2.
The NECCS fund, established as a part of the Danish Monetary Act of 2022, is designed to help adverse emissions through CCS know-how. Not like capturing and storing fossil CO2, which merely reduces emissions, capturing and storing biogenic CO2 from sources like biomass leads to adverse emissions.
That’s as a result of the CO2 was initially absorbed from the air by crops, successfully eradicating CO2 from the environment and storing it underground.
The fund goals to facilitate the seize and storage of biogenic CO2, thus contributing to total CO2 discount efforts. Whereas three contracts have been awarded from the NECCS fund, not all allotted funds have been used. There are additionally at present no plans for additional bidding rounds.
Danish Decarbonization Drive Towards Internet Zero
This transfer is a part of Denmark’s web zero methods, which initially aimed toward reaching web zero emissions by 2050. However the brand new Danish authorities set forth bold local weather change targets. It has set a world-leading purpose of a 70% emission discount by 2030 and web zero by 2045.
Moreover, they plan to scale back CO2 emissions nationally by 110% by 2050, surpassing 1990 ranges and reaching a adverse emission charge. The Danish Parliament additionally determined to section out oil and fuel extraction within the North Sea by 2050.
To help these aims, the federal government intends to implement an emission levy on the agriculture sector and impose a tax on air journey, just like measures adopted in Germany and Sweden.
Denmark has seen a constant decline in greenhouse fuel (GHG) emissions, with the electrical energy technology sector main the best way. The sector has decreased its emissions by ⅔ between 1990 and 2019, largely as a result of elevated use of renewables. This has resulted in Denmark having one of the lowest emission intensities among OECD countries.
Over the previous decade, Denmark has additionally decreased its power depth by 1 / 4, indicating a shift in the direction of a extra energy-efficient economic system. Renewable power sources, significantly biofuels, and wind energy, play a big function in Denmark’s power combine. It contributes to its comparatively excessive share of the overall power provide from renewables.
Regardless of these achievements, Denmark nonetheless faces challenges associated to demand-based emissions. Whereas production-based emissions have persistently declined over the previous fifteen years, demand-based emissions stay important.
Nevertheless, Denmark’s efforts to scale back its power depth and enhance renewable energy use exhibit its dedication to transitioning in the direction of web zero.
Denmark’s Roadmap to Internet Zero
In line with BCG’s new decarbonization roadmap for the Nordic nations, Denmark can attain its web zero purpose by means of this pathway:
To attain its local weather targets, Denmark should tackle 4 difficult sectors:
- Public electrical energy and warmth manufacturing should transition to fossil-free sources.
- The transport sector must undertake greener practices.
- Agriculture should attempt to develop into carbon impartial.
- The trade sector should work in the direction of changing into emission-free.
CCS know-how may help Denmark’s industrial sector in decreasing carbon emissions, which may contribute to a 34% discount within the nation’s whole emissions. Different measures embrace enhancing gasoline effectivity in engines, optimizing processes, and decreasing power consumption from tools.
Furthermore, utilizing bio-based supplies has the potential to abate 0.8 Mt CO2e emissions by 2050. Notably, implementing carbon seize and storage for about 50% of cement emissions are essential steps towards reaching Denmark’s local weather objectives.
The NECCS announcement coincides with latest agreements amongst 5 northern European nations for the transport and storage of CO2 within the North Sea. Denmark’s proactive strategy to carbon discount contains earlier agreements with Belgium, the Netherlands, and France to facilitate cross-border CO2 transport and storage.
All these initiatives are a part of the Danish government’s CCS plan to ramp up the method for seize and storage. Beneath this proposed plan, Denmark earmarked EUR 3.6B (Dkr 27B) for CCUS tenders.
Denmark is charting a formidable course in the direction of reaching web zero emissions by means of a mix of innovation, funding, and collaboration. With groundbreaking carbon seize initiatives just like the NECCS fund and impressive local weather targets, Denmark is essentially contributing to the worldwide effort of combatting local weather change.
