The Danish Energy Agency has selected 10 companies from a pool of 16 applicants to compete for DKK 28.7 bn ($4.1 bn) in funding for carbon capture and storage projects. The funding is expected to help reduce Denmark’s annual CO₂ emissions by 2.3 million tonnes (around five percent of Denmark’s total current annual emissions) from 2030.

The CCS fund is the third fund administered by the Danish Energy Agency and will disburse payment per tonne of CO₂ captured and stored. To be included in Denmark’s climate targets, the CO₂ must be captured within the country. It can be geologically stored either in Denmark or abroad.

The prequalified companies were selected based on their experience with carbon capture and storage projects and activities, or with major infrastructure projects. One of the selected companies is Ørsted Bioenergy & Thermal Power A/S which won a 20-year contract for Denmark’s first full-scale CCS project in 2023.

In the next phase, the prequalified companies will submit detailed project descriptions and bids. The deadline for submission of initial offers (INDO) is August 26 2025. This will be followed by a negotiation phase between the Danish Energy Agency and the bidders. Final and binding offers (BAFO) are expected to be due by December 17 2025. Contract awards are planned for April 2026. The implementation of the CCS fund is subject to state aid approval from the European Commission.

Read the full press release from the Danish Energy Agency here.