Denmark asks for input on tender plan and executive order for CO2 storage in North Sea

The Danish Energy Agency has opened a consultation period regarding a plan for tenders and an executive order for pilot and demonstration projects for geological storage of CO2 in the North Sea, inviting the public to submit comments on both the order and an environmental assessment report.

In a statement on Monday, the Danish Energy Agency informed that it had initiated a five-week consultation period last Friday on the tender plan and the executive order for pilot and demonstration projects for geological storage of CO₂ in the westernmost part of the North Sea with accompanying environmental reports.

This consultation period enables the public – including authorities and organisations – to submit comments or ask questions about the tender and the executive order. The agency explains that following the ‘Climate Agreement for Industry and Energy’ from 22 June 2020, a broad majority of the parliamentary parties have decided that capture and storage of CO2 must be possible in Denmark. This is seen as an important part of fulfilling climate policy goals. 

In line with this decision, the Danish Energy Agency has the task of creating the necessary basis for enabling geological CO2 storage in Denmark, including the necessary environmental framework in accordance with the Act on Environmental Assessment of Plans and Programs. 

Therefore, the plan for CO2 storage is expected to enable a number of activities in order to be able to inject and store CO2 in the subsoil. These activities involve feasibility studies – primarily geological/ geophysical surveys – establishment/modification of infrastructure, injection and storage activities of CO2 in existing oil fields for permanent geological storage, as well as subsequent settlement and monitoring.

On the other hand, the executive order will enable a number of pilot and demonstration activities for injection and storage of CO2 in the North Sea, including seismic surveys, injection of CO2, and rebuilding of existing platforms. The agency explains that the number of injection and storage activities that will be carried out in the North Sea as a result of this executive order is still unknown as it depends – among other things – on market prices for CO2, political efforts, financial support, technology development, etc. 

Based on the agency’s statement, the strategic environmental assessment, together with the public consultation, must ensure that at the strategic level, a decision is made on the potential environmental impacts before the entry into force of the executive order, which enables the granting of permits for pilot and demonstration projects for CO2 storage of less than 100 kilotons in the North Sea.

The consultation period for both the tender plan and the executive order for pilot and demonstration projects is scheduled to run from 18 March to 27 April 2022.

When it comes to other recent public consultations undertaken by the Danish Energy Agency, it is worth reminding that a report analysing the possible environmental impact of the development and operation of a field in the North Sea opened for consultation on 17 February 2021 and will run to 14 April 2022.