DNV’s Market Study Explores Denmark’s Potential as a European CO2 Hub in Pursuit of Climate Targets

DNV’s Market Study Explores Denmark’s Potential as a European CO2 Hub in Pursuit of Climate Targets

(IN BRIEF) DNV has completed a comprehensive market study commissioned by a consortium of Danish entities in the Carbon Capture, Utilization, and Storage (CCUS) sector, aiming to assess Denmark’s potential as a pivotal European CO2 hub. This initiative aligns with Denmark’s ambitious climate goals, targeting a 70% reduction in carbon emissions by 2030 and full climate neutrality by 2045. The study investigates market dynamics, regulatory frameworks, and infrastructure scenarios, offering actionable insights and policy recommendations. It underscores the significance of CCUS in challenging sectors and emphasizes the need for coordinated efforts, infrastructure development, and new policies to unlock the sector’s economic growth potential while supporting Denmark’s climate objectives and EU decarbonization goals.

(PRESS RELEASE) HØVIK, 16-Jan-2024 — /EuropaWire/ — DNV has recently completed an extensive market study commissioned by a consortium of Danish companies and organizations in the CCUS (Carbon Capture, Utilization, and Storage) industry. The study focuses on assessing the possibilities and business potential of establishing Denmark as a key European CO2 hub. This initiative aligns with Denmark’s ambitious climate targets, aiming for a 70% reduction in carbon emissions by 2030 and complete climate neutrality by 2045.

As part of the Danish government’s commitment to achieving the climate targets, a CCUS strategy has been introduced to address carbon emissions in challenging sectors like industry and waste management. The DNV market study, conducted by an international team of experts, delves into the market and regulatory landscape, mapping essential prerequisites for the development of a robust CCUS industry in Denmark.

The development of this industry is also important on a European level. According to the Paris agreement, all member states in the EU have committed to reducing emissions by at least 55% by 2030 compared to 1990 levels. To achieve this, the EU will depend on cross-national collaboration with countries importing and exporting e.g. electricity, hydrogen, and CO2.

As part of the study, three different scenarios with infrastructure and ports were developed. The cost-benefit analyses of these scenarios form the basis for actionable conclusions and policy recommendations to guide Denmark in fostering a profitable and publicly supported CCUS sector. The report aims for the CCUS industry to not only contribute to economic growth but also to facilitate Denmark in meeting its climate targets and supporting EU’s regional goal of decarbonization.

“The report delivered by DNV uncovers how the market may evolve, both from a perspective following today’s policies but also by proposing a different alternative. The CCUS industry has a lot of potential to become successful in Denmark, but there are challenges that need to be addressed to enable the industry to truly pick up speed,” explained Kjersti Aarrestad project manager and DNV senior consultant.

The CCUS industry has great potential to flourish in Denmark, particularly in relation to the hard to abate sectors that struggle to reduce emissions. However, a notable challenge identified revolves around the economies of scale of transportation of CO2. Coordinated efforts are necessary to realize the potential as well as development of a CO2 backbone that connects CCS port infrastructure, Danish CO2 emitters, and import pipelines with storage sites and the future CO2-use industry. If this is realized, the study predicts that the industry can contribute to substantial economic growth and support Denmark’s fulfilment of the climate targets.

“DNV’s Energy Transition Outlook (ETO) predicts that carbon prices will begin to approach the cost of CCS in the 2030s, which will cause the uptake to accelerate and the deployment at scale to begin. This means that countries must already now begin to prepare to leverage the emission targets for 2030. It is clear that the CCUS technology will have a role to play in reaching the EU climate goals, but there is a need for new policies, regulations and investments in the technology and infrastructure to fully leverage this potential. In DNV, we’re proud to have been chosen to conduct this market study and utilize our many years of qualified expertise to uncover the possibilities for CCUS in Denmark,” said Mick Cramer Jakobsen, Head of Customer Relations and Sales, Energy Systems at DNV.

“Our goal is that the market study conducted by DNV will help pave the way for Denmark in becoming a European CO2 hub. The results shed light on important challenges that must be solved as well as provide recommendations on how to move forward. The consortium chose DNV for this study due to their status as an independent advisor as well as their vast experience within the field of carbon capture and storage. We’re pleased with the results, which will be presented in full at the CO2 Hub Europe reveal on 18 January,” concluded Peter Kristensen, Chair of CO2 Hub Europe.

DNV has helped scale the CCUS services of more than 200 projects across the entire CCUS value chain in the last 10 years. By conducting and facilitating numerous research- and joint industry projects (JIP), DNV has helped drive the development of the first CCUS standards and continue to conduct JIPs within the field of CCUS. Today, DNV delivers CCUS advisory and independent verification as well as certification services to investors on due diligence and to owners and developers for assets and projects.

Media Contacts:

Sigrid Rubin
Field Marketer Nordics
Phone:
contact.energysystems@dnv.com

Kjersti Aarrestad
Senior Consultant
Phone: +4748000537
contact.energysystems@dnv.com

Mick Cramer Jakobsen
Head of Customer Relations and Sales, Region Northern Europe, Energy Systems, DNV
Phone: +45 22 18 91 24
contact.energysystems@dnv.com

SOURCE: DNV