Denmark Primed to Become European CO2 Hub
With its new CCS-strategy, the European Commission has outlined a common direction for the capture, utilization, and storage of CO2 in the EU. The strategy highlights Denmark as a pioneer in the field, and Danish Shipping predicts that Denmark could play a central role.
The strategy, named the "Industrial Carbon Management Strategy," sets the framework for the ambition to build an internal market for CO2, benefiting both the climate and employment. All measures are aimed at achieving the EU's climate goals of a 90% reduction in greenhouse gas emissions by 2040.
The new strategy is welcomed by the members of Danish Shipping.
"CCS is highlighted as a crucial technology for achieving both Danish and European climate goals. Denmark also plays a crucial role here because we have the potential to become a European CO2-hub. The strategy emphasizes that a key building block is a common European infrastructure, including the establishment of CO2-pipelines. We fully support this," said Martin Rune Pedersen, Country Manager and Head of CCS at TotalEnergies Denmark.
At the same time, the Council and the European Parliament have agreed an ambition through the Net-Zero Industry Act to establish a storage capacity of at least 50 million tons of CO2 per year by 2030, which is to be increased to 280 million tons by 2040.
"The storage potential for CO2 in Denmark's subsurface is much larger than what we can capture and store ourselves. It must be utilized internationally to support the EU's objectives. With the storage of CO2 in the subsurface of the North Sea, Project Greensand has underscored that the technology behind CO2 capture and storage works in practice. CCS is not just lines on a piece of paper or words in a report. The technology is ready, the infrastructure is there, and now there needs to be further push in development, as CCS can play an important role in reducing emissions in Denmark and the rest of Europe," said Mads Gade, CEO of INEOS Energy Denmark.
Danish Shipping notes with satisfaction that the European Commission recognizes shipping as a central part of the value chain for handling CO2.
"Denmark is a pioneer in the CCUS field. It is very positive that the EU is now taking significant steps towards establishing an internal market for capturing, transporting, utilizing, and storing CO2. Now there is a need to establish the necessary international agreements and frameworks so the scale can be increased, and companies can confidently make the necessary investments, for example, in ships capable of transporting CO2. It has the potential to become a new Danish business adventure," said Jacob K. Clasen, Deputy CEO of Danish Shipping.