On Wednesday 20 December, the European Commission announced that it had authorised a €350 million Danish State aid scheme to support investment in carbon capture and storage projects.
The scheme will be open to all technologies enabling the capture, transport and permanent geological storage of CO2 emitted by biogenic sources or CO2 from the ambient air.
The selected beneficiaries will receive the aid in 2024 in the form of direct grants through a tender procedure. It will be granted per tonne of CO2 captured and permanently stored, on a ‘pay-as-bid’ basis, until 2032.
However, the Commission stresses that in order to be financed, these projects must be operational by 2026.
The Commission concluded that the measure complied with European State aid rules, in particular the 2022 guidelines on State aid for climate, environmental protection and energy.
The institution considered that the measure was necessary and appropriate to achieve the objectives pursued and that it was proportionate. (Original version in French by Émilie Vanderhulst)