INEOS scores the first onshore CO2 storage license grant in Denmark

INEOS and its partners will be able to explore for onshore CCS in Denmark.

The Danish Energy Agency awarded an exploration license for onshore CO2 storage to INEOS and its partners, Wintershall Dea and Nordsøfonden. The onshore carbon capture and storage (CCS) license is granted for exploration in the Gassum formation in Jutland, Denmark.

CCS is “crucial” for the EU to meet climate targets.

One important reason why CCS matters, according to INEOS Energy CEO David Bucknall, is that establishing onshore and offshore sites for permanent CO2 storage is “crucial for the EU to meet its climate goals.” It will also “support a robust market” for CCS.

There is significant potential to store carbon dioxide (CO2) in Denmark’s subsurface. Geological Survey of Denmark and Greenland (GEUS) analysis reveals that the Danish subsurface can accommodate between 12 and 22 billion tons of CO2. To put this into broader perspective, that is about equal to 400 to 700 times Denmark’s annual CO2 emissions.

INEOS seeks to be a frontrunner in CO2 storage.

Within the Gassum license, GEUS has identified potential for safe CO2 storage. The partners in the Gassum license will begin the process of exploration with the aim of uncovering potential permanent storage of Danish and European CO2 in the Gassum formation. The experience previously gained from the INEOS-led Project Greensand and its pilot stage will be used in this exploration process. Investigation will reportedly be carried out in close dialogue with national and local authorities in Denmark.

“The Gassum onshore licence aligns perfectly with INEOS Energy’s strategy: Delivering energy during the green transition and being a frontrunner in carbon capture and storage,” Bucknall said in a recent INEOS Energy news release.

Could INEOS’ CO2 Storage license grant be good news for hydrogen?

Being a hydrogen-first news site, Hydrogen Fuel News was curious if INEOS’ CO2 storage license announcement would have any impact on the hydrogen industry. We reached out to the company to learn more:

How do you see this affecting the cost of hydrogen and hydrogen production within the area? 

“It is early days and there is a lot of work to be done to prove the capacity of the geology at the Carbon Storage site in Denmark,” a representative from INEOS told us in an email. “Among other things, a full environmental assessment must be carried out – a so-called EIA. This means that before a company is allowed to store CO2 underground, it must conduct thorough studies of the risk of affecting the environment, nature and people. Taking the site into operation is subject to approval by the Danish Energy Authority and environmental approvals from the local and national environmental authorities.”

“We will then need a final investment decision,” INEOS added. “But there is an ambition to be able to receive Danish and European CO2 in Gassum before 2030. This will then benefit industry across Denmark and Europe broadly as a means of removing CO2 emissions from the atmosphere.  Theoretically this could also include CO2 from hydrogen production.”  

Any thoughts on how this could affect the hydrogen industry? 

“It is essential to support the growth of hydrogen,” the representative said. “In general, we anticipate a growth of hydrogen production as a means of reducing CO₂ emissions as industry targets its net zero commitments. Blue hydrogen production will require carbon capture and permanent storage and so this and other CCS projects will enable growth of the sector.”