Ineos and Wintershall Dea have signed agreements to move forward with the next phase of the Greensand carbon capture and storage pilot project offshore Denmark.

The Greensand CCS consortium — now made up of 29 companies — is set to file a grant application with Danish authorities.

If successful, that could lead to the start of work on the pilot scheme by the end of this year and offshore injection taking place in late-2022.

Emissions will be captured at Danish cement producer Aalborg Portland and transported to the Nini West reservoir by ship.

The pilot project could lead to a final investment decision on a full-scale carbon dioxide storage project in 2023, with storage taking place by 2025, subject to the right funding and regulatory conditions.

Mads Weng Gade, Ineos Energy's head of country in Denmark, said: “Greensand has brought together a strong consortium of 29 companies, with strong competencies across key players from Denmark and around the world.

Are you missing out on ACCELERATE?
Gain valuable insight into the global oil and gas industry's energy transition from ACCELERATE, the free weekly newsletter from Upstream and Recharge.

“We are taking this step by step. Today we have the consortium in place, and if we are successful in receiving ongoing support from the Danish government and advisory board, Greensand will be able to take another important step forward in supporting the Danish climate strategy.”

In December, the Danish parliament decided to set aside a funding pool to support a Danish CO2 storage pilot project. The Nini West reservoir is located in the Siri area of the Danish North Sea.

Overall, it is expected to hold storage potential of 500,000 to 1 million tonnes of CO2 per year by 2025, increasing to a possible 4 million to 8 million tonnes of CO2 per year by 2030.

Wintershall Dea chief technology officer Hugo Dijkgraaf said: “With this CCS project we can safely store unavoidable industrial emissions, enabling a clean and successful future for European industry. It’s a win-win for climate protection and the economy.”

Greensand CCS has three phases: appraisal, pilot — or proof of concept — and full project execution.

The completed appraisal phase consortium comprised Ineos, Wintershall Dea, Maersk Drilling and Danish government-backed outfit GEUS.

Among the companies that have joined the pilot phase are Blue Water Shipping and Schlumberger.