Danish District Heating believes that a new agreement reached by the government and a broad majority in the Danish Parliament could have a major impact on the development of the Danish CCS value chain. The agreement is intended to ensure faster regulatory processes for projects with onshore CO2 capture and storage.
The organization represents waste-to-energy companies and district heating companies and sees the agreement as a concrete improvement to the framework for CO2 capture.
- More than half of the Danish potential for CO2 capture is found in the district heating sector, and its establishment will make an important contribution to the climate goals. However, capture alone cannot contribute to the climate goals in 2030, 2035 and 2050 if the entire CCS value chain is not established. With the government's agreement on CCS, some of the barriers that risk delaying the value chain will be removed or eased. This can hopefully contribute to removing some risks for the players and thus to achieving our climate goals, says Jannick H. Buhl, area manager for CCUS at Danish District Heating, in a press release.
The agreement includes, among other things, limiting access to appeals for CCS projects, temporary access to private properties for feasibility studies and new opportunities for land reservation for CO2 transport and storage.
However, Danish District Heating estimates that it is uncertain whether the agreement will have any impact on the current tender for the state's CCS pool of DKK 28.7 billion, in which seven players from the district heating sector are participating. The organization expects the agreement to have greater significance for future tenders and the development towards the climate target in 2035.
- If more CCS pools are tendered in the future, as hopefully will be done to support the work with CO2 capture in Denmark, then the agreement will have a great significance in ensuring that there is already a clear framework for transport and storage, says Jannick H. Buhl.
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