Aalborg Portland to receive over $2.4 billion for CO2 capture and storage

Aalborg Portland is set to receive a substantial sum of up to 16.4 billion Danish kroner (approximately $2.4 billion USD) over a 15-year period for its carbon capture and storage (CCS) project. The agreement, formalized through a signed contract with the Danish Energy Agency, marks a significant state-backed initiative to combat climate change.

The company, which won a state tender for the CCS fund in May, will receive 874.75 kroner per ton of CO2 captured and stored. The contract stipulates an annual capture, transport, and storage of 1.25 million tons of CO2. Aalborg Portland is required to commence operations no later than 2030.

Initially, 16 companies bid for the project, but many withdrew, leaving Aalborg Portland as the sole bidder at one point. The Energy Agency also received a bid from Gaia ProjectCo, offering them a contract with a reduced volume, which Gaia ProjectCo declined.

This large-scale investment underscores Denmark's commitment to reducing carbon emissions and exploring innovative solutions for climate mitigation. The CCS technology involves capturing carbon dioxide emissions from industrial sources, such as cement production at Aalborg Portland, and storing it underground to prevent it from entering the atmosphere.