On Thursday, the Danish Energy Agency will open the fourth round of tenders for permits for exploration and use of the subsurface for geological storage of CO2. The tender concerns three areas near the Danish coast, namely Jammerbugt, Lisa and Inez. The agency announced this in a press release.
In the announcement, the Danish Energy Agency also invites potential applicants to an information meeting about the application process on Wednesday, January 15. The information meeting will be held virtually and in English.
"At the meeting, the Danish Energy Agency will provide information about the terms and process for applying for a permit for exploration and use of the subsurface for geological storage of CO2," the announcement reads.
The tender is part of a series of previously held tenders in Denmark. According to the Agreement on strengthened framework conditions for CCS in Denmark of 20 September 2023, eight areas were to be offered before the end of 2023. The same agreement states that the state, through the North Sea Fund, participates with an ownership of 20 per cent in all exploration and storage permits.
Exploration permit gives priority right to exploitation
A permit for exploration and use of the subsoil for geological storage of CO2 has two main phases; an exploration phase and a storage phase. The exploration phase can last up to six years, where the purpose is to investigate and assess whether the subsoil conditions are suitable for safe storage of CO2, as well as how large the storage capacity is.
If a storage site is considered suitable, the holder has priority right to apply to store CO2. A possible storage permit can last up to 30 years with the possibility of extension. Around 20 years after the closure of the storage facilities, the area will be handed back to the state.
The upcoming tender for permits for exploration and potential storage of CO2 is not the first of its kind; in February 2023, the Minister of Climate, Energy and Utilities granted three exploration permits for offshore storage of CO2, and in June 2024, three exploration permits for underground storage of CO2 on land at Havnsø, Rødby and Gassum, respectively.
In addition, a new tender round opened in September 2024 for the previously tendered area at Thorning, where the bids received are under evaluation.
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