The European Fee has permitted a $1.2 billion Danish scheme to assist the roll-out of carbon seize and storage (CCS) applied sciences.
The measure contributes to the achievement of Denmark’s local weather targets and the EU’s strategic goals below the European Inexperienced Deal and the 2050 local weather neutrality purpose.
The scheme notified by Denmark, with a complete funds of round $1.2 billion, goals at selling the roll-out of CCS applied sciences used to cut back CO2 emissions which can be launched within the environment and obtain deeper decarbonization of business processes. The measure will assist CCS as a viable and efficient software to mitigate local weather change. That is anticipated to extend investor confidence within the know-how and facilitate the event of a business CCS market in Denmark.
Below the scheme, the help might be awarded by way of a aggressive tendering process to be concluded in 2023. The tender might be open to corporations lively in lots of industrial sectors, together with the waste and vitality sectors. Below a 20-year contract, the beneficiary will seize and retailer an annual minimal of 0.4 million tons of CO2 from 2026.
The help will cowl the distinction between the estimated complete prices of capturing and storing a ton of CO2 over the lifetime of the contract and the return anticipated by the beneficiary. The utmost quantity of help might be equal to round $59.5 million per yr, adjusted for inflation.
The scheme will contribute to Denmark’s efforts to cut back its greenhouse gasoline emissions by 70 p.c by 2030 in comparison with the 1990 degree. The scheme is predicted to allow the seize and storage of a minimal of 0.4 million tons of CO2 per yr and eight million tons of CO2 over the full 20-year interval of the contract.
The scheme is important and applicable to assist the discount of greenhouse gasoline emissions by way of the seize and storage of CO2 in Denmark and thereby contribute to the EU and nationwide local weather targets.
“This €1.1 billion [$1.2Bn] scheme will allow Denmark to seize and retailer a big quantity of CO2, stopping its launch into the environment. It is going to assist Denmark obtain its bold goal of local weather neutrality by 2050 on the newest, in step with the European Inexperienced Deal goals, whereas guaranteeing that competitors distortions are saved to the minimal,” Margrethe Vestager, Govt Vice-President in command of competitors coverage , stated.
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