DENMARK Trends and Developments Contributed by: Jakob Østervang, Peter Østergaard Nielsen, Anders Hørlyck Jensen and Tejs Degn Leth Ernst, Accura Advokatpartnerselskab
it offtake agreement with Microsoft for 2.95 million tonnes, marking one of the largest carbon removal deals in Europe. Other collaboration arrangements have also been entered into between some of other emitters competing for the CCS tender. Separately, under the NECCS fund, BioCirc Group was awarded a contract in April 2024 to capture and store 130,700 tonnes of biogenic CO₂ annually from five biogas plants. The project is focused on gener- ating carbon removal credits through permanent off- shore storage. BioCirc is currently developing and constructing the capture facilities and has raised capi- tal for this purpose through a DKK180 million equity increase in spring 2024, followed by a EUR70 mil- lion bond issuance, both earmarked for CCS-related investments. One flagship storage project is Project Greensand – the companies behind Greensand are INEOS Energy Denmark, Harbour Energy and the Danish State Sub- surface Resource Company Nordsøfonden. Follow- ing its Final Investment Decision in December 2024, Greensand is entering its commercial phase, with plans to store up to 8 million tonnes of CO₂ annually in the Danish North Sea. It has already demonstrated the world’s first cross-border offshore CO₂ storage and serves as a central infrastructure platform for receiving CO₂ from multiple capture projects. The Danish state is a co-owner of CO2 exploration and storage licenses in Denmark through the public fund, Nordsøfonden. The Danish subsoil is a shared resource and, as a co- owner of exploration and CO2 storage licenses, the state is guaranteed insight and influence regarding subsoil activities. Others supporting the development of CCS infrastruc- ture such as DSV have also noted the potential in the market for CO2 transport in line with the development of CCS projects both in Denmark and internationally. Noting, however, that Ørsted has announced an exit from further involvement in CCS activities but expects to continue its ongoing CO2 capture and storage pro- jects in Denmark, such as the CO2 storage project in Havnsø, in which the utility owns a 20% stake. Financ- ing, collaboration and corporate structuring activities are expected to continue for this sector so long as there are clear financial models, robust regulatory
drivers and attractive incentives in place and with the growing interest from jurisdictions that are seeking to invest into or develop the area. Biomethane The Danish biomethane market remains a very active and strategically significant segment, driven by nota- ble policy support, export opportunities and emerg- ing use cases across transport, industry and power. While prices have declined and seller-buyer expecta- tions have taken time to align, the sector is entering a second wave of consolidation, marked by increased interest in scale, integration and certificates-driven business models. Denmark is a European frontrunner, with over 58 biomethane plants and a national target of 100% biomethane in the gas grid by 2030–35. More than 95% of Danish biomethane is injected into the grid and the country exported 6.6 TWh in 2024, primarily to Germany and Sweden, where higher prices and tax incentives prevail. The market is increasingly shaped by infrastructure bottlenecks, particularly in distribution, where the physical separation between producers and end- users (eg, fuelling stations) creates margin pressure and strategic incentives for vertical integration. These dynamics are contributing to a growing interest in M&A, as investors and operators seek to capture a larger share of the value chain and mitigate exposure to fluctuating offtake conditions. From an M&A perspective, the Danish biogas sector continues to show relatively high transactional activ- ity. While some of the largest domestic players have become less active, recent developments suggest renewed momentum, with international buyers enter - ing the market, attracted by Denmark’s mature regula- tory framework and green gas potential. Infrastructure funds, utilities and strategic investors are increasingly targeting biomethane assets – not only for their energy output, but for their certificate pathways and integra- tion potential with CCS and PtX value chains. Current M&A activity is primarily focused on consoli- dating production capacity, securing feedstock access and aligning assets with evolving regulatory and certif-
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