Denmark - Environmental services

Description

The Agreement on the Danish Financial Act for 2022 introduced a new market based subsidy fund (the “NECCS Fund”) of DKK 2,609,400,000.00 (2023 prices), to achieve negative CO2 emissions by permanently and geologically storing biogenic or atmospheric CO2 (NECCS). The fund is scheduled for disbursement between 2025-2032. The granting of subsidy under the NECCS Fund is encompassed by the European Commission’s Guidelines on State aid for climate, environmental protection and energy 2022. The designation of the Contract(s) as a service contract in the contract notice, section II.1.3), etc. does not change this. The competitive bidding process is conducted as an open procedure in accordance with the general principles of the Danish Public Procurement Act.
The aim of the NECCS Fund is to contribute to the realization of Denmark's climate targets as outlined in the Danish Climate Act (Danish: “Klimaloven”).The NECCS scheme is intended as a multi-technology tender, covering all technologies that can provide negative CO2 emissions obtained through technological capture and permanent geological storage of biogenic or atmospheric CO2. By biogenic CO2, the DEA refers to CO2 created through the combustion, digestion, fermentation, decomposition or processing of non-fossil fuels or feedstock. By atmospheric CO2, the DEA refers to CO2 from the ambient air, not the emissions from energy or industrial plants.The NECCS Fund is not intended to provide subsidy for the capture and geological storage of CO2 from the combustion or processing of fossil-based fuels or feedstock. Negative emissions based on biochar created through pyrolysis of biomass, as well as other non-technological means of capturing and storing CO2, such as afforestation will also not be applicable for financial support under the NECCS scheme.The DEA wishes to enter into one or more contract(s) pursuant to which the recipient(s) of the subsidies (each recipient “the Operator”) shall ensure and be responsible for capturing, transportation and permanent, geological storage of biogenic or atmospheric CO2 (“the Contract”).As described in the tender documents the Operator shall every year from 2026 until (and including) 2032 capture and permanently, geologically store a fixed quantity of biogenic or atmospheric CO2 (“Annual Quantity”). The Operator may also offer to capture and permanently, geologically store CO2 from start of operating until 31 December 2025 (“2025-Quantity”). These quantities are to be specified by the tenderer in the offer. The DEA will award one or more Contract(s) dependent on the available funds based on the received offers.The subsidy will be paid per tonne of biogenic or atmospheric CO2 captured and permanently stored.The DEA will notify the fund to the European Commission as an aid scheme in accordance with the procedure prescribed by Article 108 of the Treaty on the Functioning of the European Union and the disbursement of the funds is dependent on the European Commission’s prior approval.The DEA will cancel the tender procedure if the approval from the European Commission is not obtained, or if the European Commission stipulates conditions for the approval which necessitate changes to fundamental elements of the tender documents.

Opportunity closing date

01 December 2023

Value of contract

more than £50m