Ineos and Wintershall Dea have received government funding for their planned Greensand carbon capture and storage (CCS) pilot in the Danish sector of the North Sea.
Ineos confirmed this week the Danish Energy Agency will award the Greensand consortium Dkr197 million ($29.9 million) for the demonstration pilot project.
“We are very pleased and thankful for the trust that has been shown to the entire consortium behind Project Greensand,” Ineos Energy chief executive David Bucknall said.
“Carbon capture storage is one of the steps needed to reach the ambitious climate goals in Denmark, and we as a consortium are very proud to be allowed to contribute to that through this project.”
The Greensand announcement followed an earlier announcement on Thursday that the Danish Energy Agency had awarded another CCS pilot project in the North Sea, Project Bifrost, Dkr75 million in funding.
The backing of North Sea CCS developments comes as the Danish government targets a reduction in carbon dioxide emissions of 70% by 2030.
The Ineos-led Greensand CCS project aims to safely and permanently store up to 8 million tonnes per annum of carbon dioxide in the Ineos-operated Siri area.
The project is being carried out in three phases — appraisal, pilot and full project execution — with the appraisal phase already completed, which Ineos said had demonstrated the viability of the CO2 storage site.
This was also later backed by DNV GL, which independently certified that the Nini West field was conceptually suitable for injecting about 450,000 tonnes of CO2, per year per well for a 10-year period, and that the subsea reservoir could safely contain the CO2.
Planning for the pilot phase is now underway, with a final investment decision on the full scale development anticipated in the second half of 2023, which could then see the CCS project being operational around 2025.
The consortium aims to inject and store between 500,000 and 1 million tpa of CO2 from 2025, increasing to 4 million to 8 million tpa from 2030.