A proposed carbon capture and storage (CCS) project in the Danish sector of the North Sea is a step closer to proceeding after initial work on the development secured funding from the Danish government.

Noreco revealed this week that Project Bifrost had secured Dkr75 million ($11.4 million) from Denmark’s Energy Technology Development and Demonstration Programme (EUDP) public subsidy scheme, which is administered by the Danish Energy Agency.

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Project Bifrost is aimed at evaluating the potential for carbon dioxide transport and storage at the Harald field, in the Danish North Sea, which is owned by the Danish Underground Consortium (DUC). The DUC consortium includes Noreco (36.8%), TotalEnergies (43.2%) and Nordsofonden (20%).

The project is expected to have a start-up storage capacity of 3 million tonnes of CO2 per annum, and, in addition to the DUC, the project partners include Orsted, which owns the pipelines connecting the DUC’s fields to shore, and The Technical University of Denmark, which has come onboard as an academic partner.

“We expect CCS to play an increasingly important role in the future and the granting of EUDP funding will strongly support Noreco and our Project Bifrost partners in delivering a concept for the DUC that continues our contribution to the energy transition while also unlocking long-term value for our shareholders,” Noreco acting managing director and chief financial officer, Euan Shirlaw, said.

The project partners will also carry out a study to qualify the potential use of additional DUC North Sea reservoirs as they become available, as well as the possibility to use the existing pipeline infrastructure connecting the DUC fields to Denmark.

Noreco noted that the reuse of existing pipeline infrastructure could become a core component of a national Danish CO2 transport system.

“Our assets in the Danish North Sea, especially the unique pipeline infrastructure, have the potential to be an important enabler for establishing Denmark as a CCS hub,” said Noreco chief operating officer John Hulme.

“The use of existing infrastructure for carbon capture and storage is a highly attractive alternative from both a climate and economic perspective when oil and gas production gradually cease.”

Noreco noted the wider CO2 transportation and storage project will be matured towards a final investment decision should the initial development and demonstration programme prove successful.