Licenses for exploration and storage of CO2, including environmental consultation rounds

With various political agreements on CCS, licenses for exploration in Denmark, provided the exploration and storage is appropriate from a safety and environmental perspective. 

The Danish Energy Agency is responsible for licensing procedures for the award of licenses for exploration and storage of CO2 in the Danish subsoil.  The Danish Energy Agency also regularly holds consultation meetings with citizens, industry, local government and other authorities as new potential CO2 storage sites undergo environmental assessment. 

The Danish state is a co-owner of CO2 exploration and storage licenses in Denmark through the public fund: Nordsøfonden. The Danish subsoil is a shared resource, and, as a co-owner of exploration and CO2 storage licenses, the state is guaranteed insight and influence regarding subsoil activities.  At the same time, state co-ownership ensures that society as a whole benefits from CO2 storage.

Map: Danish CO2 storage licensing map

2nd exploration & CO2 storage licensing round: Onshore in Denmark 2023 – Planned area and application material

Licenses for geological storage of CO2 can be applied for pursuant to Section 23 of the Danish Subsoil Act. The planning area for the onshore licensing round yields areas in Gassum, Havnsø, Rødby, Stenlille og Thorning. Prior to the licensing round, a strategic environmental assessment (SEA) was performed to ensure storage is environmentally sound. Subsequent storage projects, including exploration activities, such as collection of new seismic data and drilling operations, will also be subject to an individual Environmental Impact Assessment (EIA). 

Map: Location of planned area for CO2 storage onshore

Web-accessible alternative to the map: Location of planning area for CO2 storage

The map shows the five areas open for applications for the onshore licensing round in the areas Havnsø, Stenlille, Rødby, Thorning og Gassum. 

Application material

The Danish Energy Agency launched the onshore round for applications of licenses for exploration and storage of CO2 on 13th of December 2023.  The application deadline is 24th of January 2024. 

Award of licenses is conditional upon the applicant having the required technical and financial capacity to operate exploration and geological storage of CO2 in accordance with the Danish Subsoil Act.  

The licenses will include a condition that Nordsøfonden participate in the license with a 20% share on behalf of the state. The specific terms and conditions for the licensing round and the documentation requirements for applications are in the invitation and associated annexes, see below. 

Information meeting on onshore CO2 storage 13th December 2023

On the 13th of December 2023, the Danish Energy Agency (DEA) hosted an information meeting for interested parties on the exploration and CO2 storage licensing round onshore in Denmark, which was started on the same date. The DEA, Nordsøfonden and the Geological Survey of Denmark and Greenland (GEUS) presented on the information meeting.

The presentations from the information meeting

 

1st exploration & CO2 storage licensing round: Offshore in the Danish North Sea 2022 – Planned area and application material

Licensess for geological storage of CO2 can be applied for pursuant to Section 23 of the Danish Subsoil Act. The planning area for the first licensing round in the Danish North Sea was adopted in 2022, and the first licensing round opened on 15th August 2022. Prior to the licensing round, a strategic environmental assessment (SEA) was performed to ensure storage is environmentally sound. Subsequent storage projects, including exploration activities, such as collection of new seismic data and drilling operations, will also be subject to an individual Environmental Impact Assessment (EIA). The planned area for the first licensing round is situated in the north-western part of the North Sea on the Danish continental shelf 6° 15' E and 56° 00' N. 

Strategic environmental assessment

Map: Location of planned area for CO2 storage

Web-accessible alternative to the map: Location of planned area for CO2 storage

The map shows the Danish sector of the North Sea and the CO2 storage planning area initially being tendered in the north-eastern part. The planning area is situated at 6 degrees 15 minutes east longitude and 56 degrees 00 minutes north latitude. The site is bordered to the west and to the northeast, respectively, by two marine protected areas (nature and environmental protection). The map also shows oil/gas licence areas, some of which overlap with the planning area.

Application material

The Danish Energy Agency launched the first licensing round for applications of licenses for exploration and storage of CO2 in the Danish subsoil in the North Sea on 15th of August 2022.  The application deadline was 1st of October 2022. 

Award of licenses is conditional upon the applicant having the required technical and financial capacity to operate exploration and geological storage of CO2 in accordance with the Danish Subsoil Act.  

The licenses will include a condition that Nordsøfonden participate in the license with a 20% share on behalf of the state. The specific terms and conditions for the licensing round and the documentation requirements for applications are in the invitation and associated annexes, see below. 

Invitation to apply for licenses for geological storage of CO2 on the Danish continental shelf

Annex 1 Tendered area

Annex 1.1 Tendered area with block-numbers

Annex 2 Indicative documentation requirements for application

Annex 3 Model License for CO2 storage

Annex 4.1 Model Joint Operating Agreement for CO2 Storage

Annex 4.2 Model Accounting Procedure for Joint Operating Agreement

Annex 7 Executive Order on tender of licenses for CO2 investigation and storage

 

Exploration & CO2 storage licenses awarded

First licensing round 2022-2023 (offshore in the Danish North Sea)

 

The Danish Energy Agency received two applications in the first licensing round for licenses for exploration and storage of CO2 in the Danish subsoil in the North Sea. The applications came from TotalEnergies EP Denmark A/S and a consortium consisting of INEOS E&P and Wintershall Dea International, respectively. Both applications met the requirements and TotalEnergies was awarded two licenses, while the INEOS & Wintershall consortium was awarded one license, February 2023.

Nordsøfonden will represent the state with a share of 20% in all three permits.

The Ministry of Climate, Energy and Utilities grants Denmark’s first full-scale CO2 storage permits in the Danish North

Map of planned area for CO2 storage, marine protected areas as well as the licenses C2023/01, C2023/02 and C2023/03

Web-accessible alternative map of planned area for CO2 storage, marine protected areas as well as the licenses C2023/01, C2023/02 and C2023/03

The map shows the areas in the Danish part of the North Sea covered by the three licenses awarded in the licensing round. The sites are located within the planning area for CO2 storage and outside the marine protected areas. The INEOS-Wintershall consortium's license covers depleted oil and gas fields in the Siri Canyon area and is located to the north inside the planning area. The two licenses awarded to TotalEnergies cover the depleted oil and gas fields in the Harald area, which is located south of INEOS-Wintershall's permit, as well as a new, unexplored area with saline formations (porous sandy layers with brine) located in a south-westerly area of the planning area.  

The time horizon and the ultimate design of CO2 storage facilities depend on the upcoming exploration and surveying.

Work programmes

The specific exploration activities, such as collection of new seismic data and drillingmust be approved by the Danish Energy Agency before they are commenced. If the licensee concludes suitable areas for CO2 storage after an exploration phase, they have the preferential right to apply for a CO2 storage permit in the area. 

Strategic Environmental Assessment (SEA) for onshore and nearshore CO2 storage

Work to prepare for exploration for geological storage of CO2 in the Danish subsoil in onshore and nearshore areas has commenced. The preparatory work includes strategic environmental assessments (SEAs). The Danish Energy Agency has also held a series of public meetings, and GEUS holds public meetings in connection with their surveys of the subsoil.  

See press release: ”The Danish Energy Agency has opened for public consultation on the strategic environmental assessments of onshore and nearshore CO2 storage (Danish)

See press release: "The Danish Energy Agency launches public consultations on onshore and nearshore CO2 storage and invites to public meetings" (Danish)

Read more about environmental and safety aspects of CCS

Map of the eight areas covered by the SEA for potential planned area for CO2-storage: Stenlille, Havnsø, Rødby, Gassum, Thorning, Jammerbugt, Lisa and Inez

Source: Rambøll

Web-accessible alternative to map of the eight areas covered by the SEA for potential planned area for CO2-storage: Stenlille, Havnsø, Rødby, Gassum, Thorning, Jammerbugt, Lisa and Inez

of the eight areas covered by the SEA for potential planned area for CO2-storage: Stenlille, Havnsø, Rødby, Gassum, Thorning, Jammerbugt, Lisa and IneMap of the eight areas designated for environmental assessment of the planned tendering of onshore and nearshore CO2 storage. Of the eight sites, the Inez, Lisa and Jammerbugt formations are located in the offshore area east of Northern Jutland; the Havnsø formation is located near the town of Havnsø in western Zealand; and the Stenlille and Rødby formations are located onshore near the towns of Stenlille and Rødby, respectively. The Thorning and Gassum formations in Jutland are located south of the city of Viborg and south of Mariager Fjord, respectively.

Strategic environmental assessment (SEA) of the planned tendering of onshore and nearshore CO2 storage

In Autumn 2023, the Danish Energy Agency together with an advisory firm initiated the work on the strategic environmental assessments related to onshore and nearshore CO2 storage and have conducted a public consultation round and a series of public meetings in relation to this.

The Danish Energy Agency has now examined and strategically assessed eight onshore and nearshore areas where the conditions are suitable for CO2 storage in the subsoil. The study has resulted in two SEA reports, which have undergone public consultation from May 31, 2023, to August 9, 2023.

Consultation documents

Draft report on the Strategic Environmental Assessment (SEA) for the onshore and nearshore designated areas in which CO2 storage is to be enabled (Danish)

Draft report on the Strategic Environmental Assessment (SEA) for the executive order on pilot and demonstration projects for CO2 storage under 100 kton and no longer than 2 years, within the designated onshore and nearshore areas (Danish)

Umweltbericht Zur Umweltverträglichkeitsprüfung Des Plans Für Gebiete Zur Co2-Speicherung (Deutch)

Umweltbericht zur umweltprüfung der verordnung über pilot- und demonstrationsprojekte (Deutsch)

Proposal for SEA scoping in relation to the planned tendering of onshore and nearshore areas for geological CO2 storage

Proposal for SEA scoping in relation to the Executive Order on pilot and demonstration projects for onshore and nearshore CO2 storage

A strategic environmental assessment (SEA) refers to environmental assessments of overarching plans and programmes, while an environmental impact assessment (EIA) refers to a detailed environmental assessment of specific construction projects. 

The process for onshore storage projects 

The Danish Energy Agency and GEUS are cooperating with relevant municipalities on preliminary surveying of the designated areas. Although the areas have been designated for surveys assuming they have the right geological conditions for storage, there is no guarantee they turn out to be suitable for storage or that they will be included in an upcoming tendering procedure. The strategic environmental assessment may also identify potential significant negative environmental impacts in certain areas. 

If it is deemed suitable from a geological, safety and environmental perspective to invite tenders for exploration and storage of CO2, a storage operator will initially be able to apply for an exploration permit within a limited area. 

If a storage operator applying for a permit can demonstrate that it has the required technical and financial capacity and has put together a realistic and thorough work programme, it can be awarded a permit to investigate the suitability of the subsoil for storing CO2. If the storage operator is certain about the storage potential of the subsoil, and has a concrete project in place, it can apply for a permit to store CO2 within the site. 

If an operator is awarded a CO2 storage permit, it will also have to obtain approval of a storage facility in the local development plan, as well as go through environmental assessment at project level. This will require additional case processing by the Danish Energy Agency, the relevant municipality and the Environmental Protection Agency.

Public meetings in Holeby, Havnsø, Viborg and Hanstholm - 3rd week of November 2022

In the 3rd week of November 2022, the Danish Energy Agency toured Denmark to present plans to designate sites for onshore and nearshore underground storage of CO2.

The plans must undergo environmental assessment, and the Danish Energy Agency therefore asked the public for ideas and topic proposals for the environmental assessment.

Four public meetings in Holeby, Havnsø, Viborg and Hanstholm, respectively, were joined by a total of 210 participants, either in person or online. 

The Danish Energy Agency received many valuable inputs, ideas and questions, all of which will be considered.

The live-streamed public meeting on environmental assessment of onshore and nearshore underground CO2 storage in Viborg

Presentations from public meeting on environmental assessment of onshore and nearshore underground CO2 storage in Viborg

 

The Danish Energy Agency's environmental assessments in the CCS area - in brief

CO2 storage is currently only permitted within a planning area in the North Sea. The planned tendering procedure and the Executive Order on pilot and demonstration projects within this area underwent environmental assessment pursuant to Section 8 of the Environmental Assessment Act and current requirements for environmental assessment of plans and programmes.

The strategic environmental assessments (SEAs) of the plan and the Executive Order were put out for public consultation in spring 2022.

Environmental report, summarised statement and consultation memorandum for both SEAs

Consultation memorandum and summarised statement for the environmental report on the Executive Order on pilot and demonstration projects for geological storage of less than 100 kilotonnes CO2 in the western-most part of the North Sea

Consultation memorandum and summarised statement on the planned tendering of pilot and demonstration projects in the North Sea for the purpose of injection and geological storage of CO2 in the subsoil

Environmental report on environmental assessment of the Executive Order on pilot and demonstration projects, March 2022

SEA environmental report for the planned tendering of pilot and demonstration projects in the North Sea for the purpose of CO2 storage, March 2022

A plan for onshore and nearshore geological CO2 storage is under preparation. The plan and the associated Executive Order on pilot and demonstration projects will also have to undergo strategic environmental assessment (SEA) 

Randi Onsberg Johansson
Special Advisor (+45) 3395 1301
Salik Anders Rosing
Advisor (+45) 3392 7425