In a similar way to oil and gas projects in the North Sea, the Danish state will demand 20% ownership of projects with plans for underground CO₂ storage in Denmark.

This move comes as part of a deal struck by broad majority in parliament Tuesday, informs the Danish Ministry of Climate, Energy and Utilities.

Carbon capture and storage is one element in the government’s plan to reach its 2030 climate targets.

This will require companies to file applications for using the Danish subsoil to store carbon dioxide.

One of the criteria for applying is that the Danish state gains one fifth ownership of the projects.

This is similar to demands oil and gas companies have faced when applying for licenses to extract gas or oil from Danish territory.

In this regard, state-owned oil and gas company Nordsøfonden has handled the state’s ownership of such projects, as will be the case the projects involving CO₂ storage.

With one fifth ownership, the state also gets a share of profits should projects prove lucrative.

On the other hand, the state must also contribute with one fifth of the investments and could get stuck with the bill for projects that turn out less successful than expected.

The first permits for drilling plans involving carbon storage in the Danish underground will be issued in 2023.

Initial projects will concern CO₂ storage in depleted oil and gas reservoirs.

”For decades, Denmark has profited from extracting oil and gas from the North Sea, and now we have agreed on the framework for how to profit from pumping CO₂ into the same underground down the line,” says Minister of Climate, Energy and Utilities Dan Jørgensen in a press release:

”The oil business could turn into a climate venture.”

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