DENMARK Trends and Developments Contributed by: Jakob Østervang, Peter Østergaard Nielsen, Anders Hørlyck Jensen and Tejs Degn Leth Ernst, Accura Advokatpartnerselskab
Over the past 12 months, the Danish energy and infrastructure M&A market has been characterised by divergence across technologies. Rather than a unified trend, each segment has followed its own trajectory – shaped by regulatory developments, infrastructure constraints and shifting investor priorities. Biometh- ane and CCS have emerged as areas of strategic growth, supported by favourable policies, certificate frameworks and scalable offtake models. Solar and wind, by contrast, are facing structural headwinds, while battery storage is becoming a strategic enabler in power generation. Development of offshore wind remains interrupted by failed public tenders, and Power-to-X is still struggling, awaiting commercial and infrastructural alignment. This article explores the key developments and M&A dynamics across the following technologies: • Carbon Capture and Storage (CCS) Strong policy support and landmark offtake agreements have triggered early-stage M&A activity. The market is considered the next step on the path towards net zero and is therefore a key focus area in the renewables M&A space. • Biomethane High transactional activity driven by consolidation, certificate-price forecasts and export potential. International investors are enter- ing the market and biomethane in liquefied form (LBG) is gaining traction in maritime offtake. • Offshore Wind Market slowdown due to macro- economic volatility and supply chain risk. M&A is focused on RTB-stage assets and joint ventures to share construction risk. • Solar M&A activity is low and focused on dis- tressed or stranded assets. Grid delays and volatile electricity prices have weakened the business case and development pipeline. • Onshore Wind Limited development and deal flow due to local resistance and high indirect capex. Operational assets are held long-term; develop- ment assets face political and logistical barriers. • Battery Energy Storage (BESS) Increasingly cen- tral to valuation and the business case of power projects (solar and onshore wind). Financing or stand-alone projects remains constrained, however strategic interest is growing.
• Power-to-X (PtX) Development is stalled due to lack of offtake certainty and infrastructure delays. M&A remains selective, pending offtake certainty and regulatory alignment. • Geothermal Early-stage momentum driven by infrastructure-led and technology-led models. M&A activity is expected to follow as demonstration projects mature. Carbon Capture and Storage CCS is gaining momentum in Denmark, supported by a robust policy framework, technological advances and growing investor appetite. The market is transi- tioning from pilot projects to commercial-scale infra- structure, and we expect M&A activity to reflect this shift. As the CCS value chain matures and with new subsidy schemes, we expect to see increased M&A activity in the form of joint ventures and joint develop- ment arrangements, strategic divestments and infra- structure fund participation. Denmark has historically run various tenders for CCS subsidies, including the previous round of the Nega- tive Emissions CCS fund (NECCS), which supports the capture and permanent offshore storage of bio- genic CO2 as well as carbon captured directly from the atmosphere (DACCS). Currently, the Danish Ener- gy Agency has an ongoing tender for subsidies from the CCS Fund, which supports the capture and per- manent storage of both fossil and biogenic CO2 with a support period from 2029 to 2044, aimed at support- ing the deployment of full-scale CCS infrastructure. The Danish tenders provide support to make projects more bankable. With significant policy support and early commercial success, Denmark is positioning itself as a leading CCS hub in Northern Europe. Linked to these opportunities, financing, collaboration and corporate structuring activities have emerged in two key aspects of the CCS value chain: (i) the capture facility and (ii) the storage facility. One such capture project is Gaia, a joint venture between Copenhagen Infrastructure Partners (CIP) and Vestforbrænding. Gaia is developing a large-scale capture facility at Vestforbrænding’s waste-to-energy plant, with a capacity of up to 500,000 tonnes of CO₂ per year. Gaia has secured a landmark carbon cred-
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