Tender for Contract on subsidy for carbon capture, transport and storage

With the agreement on a strengthened framework for CCS in Denmark (in Danish: “Aftale om styrkede rammevilkår for CCS i Danmark”) of 20 September 2023, a majority of the Danish Parliament decided to merge the second phase of the CCUS fund and the GSR fund into one combined fund, the “CCS Fund”. In June 2024, a political decision was made to deploy the CCS Fund through one single competitive bidding process. The purpose of the CCS Fund is to achieve CO2 emission reductions and/or negative emissions by Storing Fossil CO2 and /or Biogenic CO2 or Atmospheric CO2. The overarching aim of the CCS Fund is thus to contribute to the realization of Denmark's climate targets as outlined in the Danish Climate Act (in Danish: “Klimaloven”). By contract notice no. 604064-2024, published 8 October 2024, the Danish Energy Agency (the DEA) launched the tender for the deployment of the CCS Fund according to which 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 achieving the CO2 emission reductions and/or negative CO2 emissions (“the Contract”). The total maximum available subsidy of the CCS Fund is DKK 28,659,200,000 (2025-prices, including VAT and including potential derived tax losses (in Danish “afledt afgiftstab”)) covering the period from (and including) 2029 to (and including) 2044 . Reference is made to the contract notice for further information on the procedure and Contract(s), including the value of the Contract(s). The granting of subsidy under the CCS 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 etc. does not change this. The competitive bidding process is conducted as a negotiated procedure in accordance with the rules and principles of section II of the Danish Public Procurement Act. The DEA has notified the CCS Fund to the European Commission as an aid scheme in accordance with the procedure prescribed by Article 108 of Treaty on the Function of the European Union (TFEU), and the granting of subsidy and conclusion of one or several Contracts under the CCS Fund is dependent on the European Commission’s prior approval. With this notice, the DEA wishes to promote transparency regarding the changes and clarifications made to the tender documents. The contract notice no. 604064-2024 was published on 8 October 2024. In May 2025 the DEA prequalified 10 tenderers to submit first indicative offers (“INDO”) (see https://ens.dk/presse/disse-10-selskaber-skal-konkurrere-om-milliardpulje-til-fange-og-lagre-co2). In June 2025 the DEA made some amendments to the tender documents (primarily corrections, restructuring, spelling errors and clarifications) and released the revised tender documents to the tenderers. In October 2025 the DEA conducted negotiations with the tenderers regarding the tender documents and the INDO’s in accordance with the procedure. Based on communications with the European Commission, negotiations and comments from the tenderers, the DEA has made changes and clarifications to the tender documents, see further description below. The DEA released the revised tender documents to the tenderers on 14 November 2025 in the electronic tendering system while requesting a best and final offer (“BAFO”) from the tenderers. The DEA has made the revised tender documents publicly available with track changes on the DEA’s website (see https://ens.dk/forsyning-og-forbrug/ccs-fangst-og-lagring-af-co2/ccs-udbud-og-anden-stoette-til-udvikling-af-ccs), see the tab “Udbud af CCS-puljen”. At the time of publication of this notice, the tender procedure is in the phase for submission of BAFO, and thus no decision has been made concerning the award of the Contract(s) to one or more tenderers at this point. The changes of the tender documents include e.g. a reduction of the penalty level and the termination fee (corresponding to a 50% reduction compared to the initial tender documents) (Appendix 5, clause 14, and Contract, clause 20.5.3) and the corresponding reduction of the amount of the Liability Cap and Performance and Warranty Guarantee (Contract, clauses 13 and 21.4 and Appendix 11), introduction of a penalty threshold of 90% of the Annual Quantity (Appendix 5, clause 14.2), changes regarding exemptions for non-performance (Appendix 5, clause 14.2), change regarding the time limit for the DEA’s termination due to postponement of the Commercial Operation Date (Contract, clause 10.2), change regarding the level of non-performance with the Annual Quantity is a material breach (Contract clause 20.5.2), changes regarding the Operator’s termination for convenience (Contract, clause 24.2), change in relation to fixed expiry date for the Performance and Warranty Guarantee (Contract clause 13.11), changes regarding force majeure (Contract, clause 23), and change from quarterly to monthly payment of subsidies (Appendix 5). The clarifications include e.g. the clause regarding Sub-Suppliers (Contract, clause 5), circumstances for postponement of the Commercial Operation Date (Contract, clause 10.2), the DEA’s termination due to postponement of the Commercial Operation Date and material breach (Contract, clauses 10.2.6-10.2.9 and 20.5.3-20.5.4), changes in the Operator’s project (Contract, clause 11), Intellectual Property Rights (clause 12), General Requirements in Appendix 3, the declaration of intent to provide a performance and warranty guarantee (Appendix G), and the content of the Project Description, Project Schedule, Authority Approval Plan and Risk Management Plan (Tender specifications, clause 13.1.4).