Danish shipping companies ready to tap into CO2 transport opportunities
Danish Shipping, a focal point for Denmark’s shipping community, has welcomed the government’s move to support the ambitious countrywide CO2 storage plan which is expected to create immense possibilities for domestic transport companies.
On 30 June, the Danish government has entered into an agreement on capture and storage of CO₂ (CCS) with a number of parties.
Denmark is almost halfway to reducing CO2 emissions by 70 per cent by 2030. However, in order to achieve the ambitious reduction target, the country needs to address emissions that are difficult or completely impossible to reduce via carbon dioxide capture and storage.
The deal comprises several initiatives that will enable storage in the Danish subsoil both in the short and long term. Under the agreement, storage of CO2 in spent oil and gas fields will start as early as 2025, just as the import, export and transport of CO2 across national borders will be made possible.
The agreement also allocates DKK 210 million from the research reserve for the study of potential CO2 storage sites in Denmark.
There is room to store 12-22 billion tonnes of CO2 in the Danish subsoil, according to analyzes from GEUS. This corresponds to between 400 and 700 times of Denmark’s annual CO2 emissions.
In May, Danish shipping companies Evergas and Ultragas established Dan-Unity CO2, the first shipping company specialized in vessels for the transport of captured CO2 for storage and re-use.
The new company also welcomed the milestone agreement announced by the government.
“At Dan-Unity, we are pleased with the broad political support for the roll-out of CCS in Denmark. Transport of CO2 is still an uncultivated territory at an international level, and therefore we are well satisfied with the Danish ambitions for the sector,” Steffen Jacobsen, CEO of Evergas, commented.
“Not least the ambitions for import and export of CO2 will be crucial for our part of the industry, and here we are pleased that the Government will focus on agreements with like-minded countries regarding the transport of CO2 across national borders.”
Several other shipping companies are ready behind the scenes, and Danish Shipping hopes that the initiative can become a central business leg for more shipping companies.
Therefore, Danish Shipping believes that there should be a “T” for transport included in the abbreviation, so that CCS becomes CCTS – carbon capture, transport and storage.
“We are very pleased that the first step has now been taken in relation to the framework for CCTS in Denmark. Namely, clear lines are needed for the industry to be able to deliver – initially towards 2025 – but also with a longer term,” Anne H. Steffensen, CEO of Danish Shipping Companies, pointed out.
Negotiations on a comprehensive strategy for the capture and storage of CO2 are to continue after the summer holidays, with first projects scheduled to be up and running in 2025.
“We look forward to following the negotiations on CO2 transport after the summer holidays. An area where Danish shipping companies are already ready to take on the tasks – both nationally and internationally.”