COPENHAGEN/OSLO, Aug 21 (Reuters) – Denmark plans to allocate 26.8 billion Danish crowns ($3.9 billion) in state help over 15 years for tasks to seize and retailer 2.3 million metric tons of carbon dioxide (CO2) emissions per 12 months, the local weather and power ministry mentioned on Monday.
The nation has set a goal of reaching internet zero carbon emissions in 2045 and sees carbon seize and storage (CCS) know-how as key to reaching that focus on. By 2030, CCS ought to assist to scale back not less than 3.2 million tons of Denmark’s CO2 emissions.
“We have to cut back the chance of not reaching our ambitions. That is the federal government’s response,” Local weather, Vitality and Utilities Minister Lars Aagaard mentioned at a press convention.
“It will imply that extra actors can bid and thus create larger certainty that CO2 seize and storage can ship its share to satisfy the CO2 discount targets,” the ministry mentioned in an announcement.
The brand new tasks must turn into operational in 2029, it added.
Efforts to promote the know-how have gained steam throughout Europe over the previous few years as industries and governments search to scale back emissions to satisfy their local weather targets.
In Might, Denmark awarded 8 billion crowns to power group Orsted (ORSTED.CO) to seize and retailer 0.4 million tons of CO2 per 12 months from two warmth and energy vegetation over a 20-year interval.
It now plans to allocate 10.5 billion crowns for a young subsequent June, and 16.3 billion crowns for a young in 2025 to seize and retailer 0.9 million and 1.4 million tons of CO2 respectively.
In February, Denmark awarded its first licences for exploration of full-scale CO2 storage within the Danish North Sea to TotalEnergies (TTEF.PA) and a consortium consisting of INEOS Vitality and Wintershall Dea (WING.UL).
The Greensand mission led by INEOS and Wintershall goals to begin injecting 1.5 million tons per 12 months (mtpa) of CO2 beneath the seabed in 2025-2026, growing capability to eight mtpa by 2030.
TotalEnergies’ Bifrost mission goals to inject as much as 3 mtpa of CO2 right into a depleted oil and fuel subject from 2027, and reaching 5 million mtpa by 2030.
Denmark postponed the second tender for offshore CO2 storage beforehand deliberate for Aug. 15 to present extra time to contemplate whether or not the state ought to take a much bigger position in future licences.
The federal government holds stakes in previously-issued licences.
($1 = 6.8365 Danish crowns)
Reporting by Nerijus Adomaitis, extra reporting by Johannes Birkebaek; Modifying by Emelia Sithole-Matarise
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