The Danish Energy Agency opens for applications for CO2 storage studies
The Danish Energy Agency has opened for applications for permits to investigate the possibility of CO2 storage in the subsurface in five selected onshore areas. Initially, the exploration permit is granted for a period of six years, with the possibility of extension. If the area meets environmental requirements and demonstrates suitable potential for CO2 storage, the permit holder has priority to apply for a storage permit. The deadline for application is 24 January 2024.
Opening of tender for exploration permits and geological storage of CO2
On 13 December 2023, the Danish Energy Agency opened for applications for permits to investigate the subsoil for the possibility of CO2 storage in defined areas around Gassum, Havnsø, Rødby, Stenlille and Thorning. At the same time, the Danish Energy Agency has published the terms and conditions for the applications.
It is possible to apply for a permit to conduct studies within the permit area. Permits are initially issued for 6 years with the possibility of extension to 10 years.
If the study is carried out satisfactorily and suitable geological structures are identified, the permit holder has priority to apply for an extended permit for storage activities for up to 30 years with the possibility of further extension. The permit therefore grants exclusivity for storage from the outset, but the actual storage activities can only begin once specific permit conditions have been met.
To obtain a permit, the applicant must, among other things, have the necessary technical and financial capacity in accordance with the Danish Subsoil Act.
The permits will include a condition that Nordsøfonden, on behalf of the Danish state, participates with a 20 percent share as stipulated in the Agreement on strengthened framework conditions for CCS in Denmark of 20 September 2023.
The selected areas and environmental requirements
The five areas listed in the tender documents have been identified by the National Geological Survey of Denmark and Greenland as potentially suitable for CO2 storage. A Strategic Environmental Assessment (SEA) of these areas has also been carried out and is published in the tender documents.
In some of the areas, the permit area is divided into surface and subsurface due to considerations for Natura 2000 areas.
Activities in the study phase and concrete storage projects, including drilling, are subject to the Environmental Assessment Act and require either an environmental and habitat screening or a full environmental impact assessment (EIA).
Next step
The application must be submitted to the Danish Energy Agency and the deadline for applications is 24 January 2024. The Danish Energy Agency expects to make decisions on granting permits in 2024.
Want to know more?
If you would like to know more, please contact Plesner's Energy and Infrastructure team.
