Denmark's largest CO2 emitter, Aalborg Portland, has submitted a solitary bid for state CCS funding, declaring the massive carbon capture project its 'license to operate' as rivals dropped out, citing impossible requirements.
CEO Søren Holm Christensen confirmed the cement producer is the only company so far to seek an undisclosed amount from the state's 28.7 billion kroner subsidy pool. The goal is to capture 1.4 million tons of CO2 annually from its Aalborg factory chimneys by 2030.
"We cannot see a model for us where we produce in Denmark and emit such large amounts of CO2," Christensen said. "We want to be part of the solution in this country, and so it is a license to operate to make this change."
The Stakes for Denmark's Climate Goals
The national climate targets depend heavily on carbon capture projects delivering results, especially from Aalborg Portland. Its successful bid is critical for both the construction industry's carbon accounting and Denmark's legally binding emissions reductions. The company has previously stated the capture plant alone costs around 4.5 billion kroner, with factory modifications adding over a billion more.
Christensen wouldn't elaborate on all additional costs but stressed most expenses lie in establishing the full value chain for handling the captured CO2. He dismissed industry speculation that the company was using widespread criticism of the fund to ask for a higher subsidy.
"You cannot get subsidies for costs you do not have. The bid must be justified and audited," he pointed out, adding that Aalborg Portland's proposal leaves "plenty left over for others in the pool."
A Controversial Funding Model
The bid comes despite all other companies in the race previously stating they couldn't meet the tender's demands, particularly the strict 2030 deadline and severe financial penalties for delays. The deadline for applications is Wednesday afternoon, and it remains unclear if any of the other ten pre-qualified companies will join Aalborg Portland in submitting a bid.
Christensen didn't hide the difficulty his own company faced in meeting the state's criteria. "It has not been a vacation. It has really been intense, both in relation to optimizing our timeline and, as far as possible, avoiding these penalties that come from January 1, 2030, if you are not ready," he stated. "We would have preferred lower penalties and more time, but those were simply the pool's bidding criteria."
The Technical and Financial Challenge
The project represents one of the largest industrial decarbonization efforts in Danish history. Capturing 1.4 million tons of CO2 annually is a monumental engineering task that involves retrofitting an existing cement production process. The technology, while promising, is still being deployed at this scale in Europe.
The financial structure of the state fund has been a key point of contention. The combination of a fixed deadline, high penalty clauses, and the sheer capital required for construction created a high-risk proposition for many potential bidders. For Aalborg Portland, the calculation was different, the investment is seen as fundamental to the plant's long-term future in a carbon-constrained economy.
The Road to 2030
With the bid submitted, the focus now shifts to the Danish Energy Agency's evaluation process. A successful award would trigger years of complex construction and integration work at the Aalborg site, with the 2030 deadline looming. The company must navigate supply chains, regulatory approvals, and the technical integration of capture technology with its core manufacturing process.
The project's scale means its fortunes will be closely tied to broader developments in the European CO2 storage and transport network, known as the 'value chain' Christensen referenced. Denmark is positioning itself as a hub for CO2 storage in the North Sea, but the infrastructure is still under development.
As the sole bidder in a criticized process, Aalborg Portland carries a dual burden: proving its project is technically and financially sound, and validating the state's controversial funding model. The coming months will determine if Denmark's bet on a single, large-scale solution to a major emissions problem will pay off, or if the criticisms from the companies that walked away will be vindicated.
Christensen's final words framed the challenge in stark, simple terms: the project is about securing the right to continue operating in Denmark. The state must now decide if it agrees, and at what price.