The role of CCS in the energy transition: Hamburg looks to Denmark From Hamburg to the world: CCS field-trip to Denmark

In 2023, around twelve million CO2 were emitted in Hamburg. On the path to climate neutrality, which according to the latest referendum is to be achieved as early as 2040, greater efforts have to be made to reduce or offset the emission of climate-damaging gases. But this cannot be avoided completely, especially in the so-called hard-to-abate industries such as steel, cement, chemicals and aviation. Carbon capture and storage technology, or CCS for short, can play an important role in capturing CO2 from industrial waste gases, transporting it away and storing it underground. Denmark is considered a European pioneer in this area. To learn from the Danish experience and discuss cooperation perspectives in the application of CCS technology, a 20-member business delegation led by Hamburg’s Energy Senator Katharina Fegebank travelled to Copenhagen in mid-April 2026. The EEHH cluster was also present, represented by Managing Director Jan Rispens and Sibyl Scharrer, International Cooperation Hydrogen.

CCS technology as an element of climate policy

The first plans for carbon capture in Denmark date back to the early 2000s, with some energy companies beginning to test this technology on their coal-fired power plants at that time. These plans became more concrete in 2008, especially with Vattenfall’s announcement that it would retrofit its own coal-fired Nordjyllandsvaerket power plant with CCS technology. However, the project was halted a year later because of protests.

It was not until 2020 that a broad political consensus was reached on the application of CCS technology in Denmark. In 2023, the Danish parliament approved a state funding programme for CCS with a total budget of approx. 28.3 billion Danish kroner (equivalent to approx. 4 billion euros) for the period from 2029 to 2044. The funding aims at reducing CO2 emissions or achieving negative emissions by means of the permanent and geological storage of fossil, bio-fuelled and atmospheric CO2.

The amendment to the Carbon Dioxide Storage Act in November 2025 paved the way in Germany for the capture, transport and permanent storage of CO2 in deep geological formations, especially for very energy-intensive industries. So far, the use of the technology has only been approved for research purposes. The German government sees the use of CCS technology as essential in achieving Germany’s climate targets. To this end, the relevant transport and storage infrastructures will have to be built by 2030. At the same time, CCS technology is subject to criticism because it poses possible environmental risks and is associated with high investment costs. It is also argued that it could delay the expansion of renewable energies.

Hamburg-Copenhagen CCS exchange

As part of the field-trip, the Hamburg delegation met several companies in Denmark to learn more about their projects and experiences. In addition, a roundtable was organised to discuss the development of framework conditions for CCS technology.

“Copenhagen and Hamburg share a close bond – not only as exceptionally liveable cities, but also as urban centres with ambitious climate goals. Denmark is a pioneer in Europe in decarbonisation and especially in dealing with CCS technology. CCS is also fundamental to Hamburg’s path to climate neutrality. We have to learn from best practice examples if we are to make our industry fit for the future and climate neutral.” Hamburg’s Energy Senator Katharina Fegebank.

Denmark’s largest energy supplier, Ørsted, presented its CCS project in Kalundborg. The world’s first CO2 hub for bioenergy is scheduled to go into operation in Kalundborg this year. In future, it will be possible to capture around 430,000 tonnes of CO2 annually from the Asnæs combined heat and power plants in the region and Avedøre in the greater Copenhagen area. The CO2 is transported by ship to Norway, where it is temporarily stored in an onshore infrastructure and then transported via an underwater pipeline to the Norwegian part of the North Sea. The Danish Energy Agency is funding the project with 8.2 billion Danish kroner (the equivalent of approx. €120 per tonne of CO2) over a period of 20 years. A contract has already been signed with Microsoft for the purchase of 3.67 million tons of certified CO2 removals.

During a visit to Everllence’s CCS research laboratory, the delegation gained very interesting insights into the profitability calculation along the CCS value chain. According to the company’s estimates, the costs for CO2 capture would drop significantly as the size of the plant increases. From a capture volume of around 0.3 million CO2 per year, the cost advantage slows down before largely stabilising at around 0.5 to 0.6 million tonnes of CO2 per year. Since most individual players, such as municipal cleaning services, will not reach such volumes, the challenge is to develop suitable business models for bundling small emission sources (point sources). At the same time, the state is called upon to provide a transport infrastructure that is available to all potential users without discrimination.

Conclusion

The green transformation has been promoted consistently in Denmark ever since the oil crisis of the 1970s. CCS technology is now a cornerstone of Denmark’s greenhouse gas emission reduction project, with the goal of reducing emissions by 70% by 2030. Despite high investment costs, various stakeholders see great opportunities for economic growth in it. There are currently more than 100,000 people employed in the green economy, and annual turnover is 41 million euros, corresponding to about 5.5% of the gross domestic product.

The Danish experience shows that a close public-private partnership is crucial for the success of the energy transition. The state must set a reliable political and financial framework to offer companies long-term planning security for investment and innovation. Proactive and trusting communication also plays a vital role in increasing public acceptance.

In Denmark, the majority of the population is not fundamentally opposed to CCS technology. Nevertheless, specific issues and concerns, for example with regard to the loss of value of real estate, must be taken seriously. Public acceptance goes beyond approval or disagreement: it also has a significant influence on the pace, costs and stability of the green transformation.