The Danish Energy Agency has launched the fourth licensing round for exploration and CO2 storage in three areas near the Danish coast.
The licensing round for exploration and use of the subsurface for geological storage of CO2 covers Jammerbugt, Lisa and Inez areas.
The areas are among several designated by the Geological Survey of Denmark and Greenland (GEUS) because the geological conditions in these areas are particularly suitable for underground storage of CO2.
A strategic environmental assessment of the areas has already been carried out to ensure that any storage can take place in an environmentally sound manner. Projects and activities related to exploration and storage, including drilling, must also undergo a specific environmental assessment.
The Danish Energy Agency has invited potential applicants to an information meeting on January 15, 2025, where the application process will be further explained.
Several exploration licenses have already been awarded. In February 2023 the Minister of Climate, Energy and Utilities granted three offshore exploration licenses for CO2 storage, and in June 2024 three onshore exploration licenses at Havnsø, Rødby and Gassum.
In September 2024 a new licensing round opened for the previously tendered area at Thorning, where the received bids are being evaluated.
A license to explore and use the subsurface for geological storage of CO2 has two main phases - an exploration phase and a storage phase.
The exploration phase can last up to six years, the purpose of which is to determine through exploration whether the subsurface conditions are suitable for the safe storage of CO2 and how large the storage capacity is. If a storage site is deemed suitable, the license holder has a priority to apply to store CO2.
Any storage license can last up to 30 years with the possibility of extension. Around 20 years after closing the storage site, the area is returned to the state.