Denmark: TotalEnergies, Mitsui and CarbonCuts in the run for coastal CO2 storage permits

The Danish Energy Agency has received two applications in the tender for permits to explore and use the subsurface for CO2 storage in three coastal areas in Denmark, launched at the beginning of 2025.

The tender, opened on January 9, covers three areas near the Danish coast – Jammerbugt, Lisa and Inez, which are among several that have been designated by the Geological Survey of Denmark and Greenland (GEUS) as their geological conditions are particularly suitable for storing CO2 underground.

By the March 6 deadline, CarbonCuts submitted its application to investigate the possibility of storing CO2 underground in the coastal areas, while the second one came from TotalEnergies EP Danmark and Mitsui & Co.

A strategic environmental assessment of the areas has already been performed to ensure that storage can be carried out in an environmentally sound manner. For the permits to be granted, the subsoil must be thoroughly investigated to determine whether CO2 storage can be carried out safely and environmentally soundly in the areas.

The Danish Energy Agency will review the applications in the coming period and assess the applicants’ technical and financial capacity as well as the work programs they offered. Before a permit is granted, the Minister for Climate, Energy and Utilities Lars Aagaard must present a report to the Danish Parliament’s Climate, Energy and Utilities Committee on which permits are to be issued.

“Denmark has good geological conditions and is an attractive place to investigate further in relation to CO2 storage. This confirms the interest and the 2 applications that the Danish Energy Agency has now received,” said Head of CO2 Storage (CCS) at the Danish Energy Agency, Henrik Sulsbrück.

“CO2 storage is a crucial part of the solution to the climate challenges we are facing, and is for the benefit of us all. And at the same time, Denmark has the necessary framework that ensures that CO2 storage can be carried out responsibly – both in relation to safety, nature and the environment.”

In February 2023, the Minister of Climate, Energy and Utilities granted three exploration permits for offshore CO2 storage, and in June 2024 three exploration permits for underground storage of CO2 on land. The Danish Energy Agency is currently processing an application for a fourth permit on land.

The permit to investigate the subsurface is initially granted for up to six years with the possibility of extension to a total of ten years. If the area meets all environmental requirements and is found suitable for storing CO2, the permit holder has priority to apply for a permit to store, which can last for up to 30 years with the possibility of extension.

After this, the project will move into the shutdown phase, where storage is closed and the CO2 in the subsurface is subsequently continuously monitored.

The projects are covered by the Environmental Assessment Act, and activities in the exploration phase, such as deep drilling, must undergo an environmental and habitat screening, just as a potential storage project will have to undergo a full environmental assessment (EIA).

Of note, INEOS E&P and Wintershall Dea at the end of 2022 secured a permit for the Greensand Pilot Injection Project. In February 2023, the partners received the first full-scale CO2 storage permit for the Danish North Sea.

Denmark marked a world first on March 8, 2023, with the first-ever injection of CO2 in the North Sea as part of the project.