In this episode of The CDR Policy Scoop, Sebastian Manhart and Eve Tamme are joined by Jannick Buhl, Head of CCUS, CDR and Biomass at the Danish District Heating Association, to unpack what happened in Denmark’s highly anticipated CCS subsidy tender.
Recorded in early February, the conversation examines why nine out of ten pre-qualified bidders withdrew from a tender worth nearly €4 billion, leaving just two final applications. Jannick explains why Denmark’s approach - requiring bidders to take responsibility for the entire CCS value chain, from capture to transport to storage - proved too risky for most projects under the current market conditions
The episode dives into the key bottlenecks behind the withdrawals, including limited access to CO₂ storage, strict delivery timelines tied to Denmark’s 2030 climate target, and heavy penalties for delays. The discussion explores why Aalborg Portland, Denmark’s largest emitter, was still able to submit a bid, and what assumptions it is making around onshore storage availability.
Sebastian, Eve, and Jannick also examine broader lessons for governments designing CCS and CDR funding schemes: whether tenders should cover the full value chain or be broken into separate components, how much delivery risk the state should absorb, and how tight climate deadlines can unintentionally undermine project development.
The episode concludes with a forward-looking discussion on what Denmark might do next, how withdrawn projects could be revived under different tender designs, and what other countries can learn from Denmark’s experience as they roll out large-scale CCS and CDR support mechanisms.
Links:
Eve Tamme: LinkedIn and Website
Sebastian Manhart: LinkedIn and Website - post on this topic
Jannick Buhl: LinkedIn
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