Making CO₂ a viable business

What is the price of CO₂? What are the main cost drivers and incentives for CCUS? And how do these play into developing a well-functioning CCUS value chain? 

To gain more insights on this topic, COWI gathered high-level representatives from key stakeholders who are actively shaping and managing the CCUS value chain. The live discussion took place at the Morning Fuel webinar on 2 April 2025.

Direct electrification and energy efficiency are highlighted as key instruments for meeting climate targets. However, meeting these targets is only possible with large-scale CO₂ capture – both for utilisation (CCU) and storage (CCS) purposes. 

According to the IPCC, capture and storage of 730 billion tonnes of CO₂ by 2100 is needed to meet the Paris Agreement goal of keeping global warming below 1.5 °C. For Denmark, CCS is crucial in meeting the stated ambitions of reducing emissions by 70% by 2030 and reaching climate neutrality by 2045, contributing to 3.2 million tonnes of CO₂ reductions annually by 2030. Significant public funding has therefore already been made available for the development of CCS projects, totalling more than EUR 5 billion (DKK 38 billion). 

At the same time, captured CO₂ is recognised as a key feedstock for green methanol, e-SAF and other synthetic fuels, offering a viable decarbonisation pathway for sectors where electrification is not an option. With ambitious plans to deploy 4-6 GW of electrolysis capacity by 2030, Denmark aims to produce large-scale green hydrogen, which, when combined with captured CO₂, forms the backbone of the future e-fuel industry. 

While carbon capture is not a new technology, implementing it at this scale presents new challenges. Much focus has so far been dedicated to reducing costs and improving efficiency. What has become increasingly clear across projects, though, is that a well-functioning value chain is pivotal for success. All actors across the entire chain – from capture to transportation to utilisation and storage of CO₂ – therefore need to be fully aligned in terms of timelines, capacities and, not least, financial interactions. 

This point was emphasised during the discussion: The whole value chain has to move together. Success depends on simultaneous progress across capture, transportation and storage. Coordinated development enables scale and de-risked investments, making it easier for new actors to join. 

Speakers highlight how Denmark has established itself as a frontrunner in carbon capture and storage – turning climate ambition into action while building knowledge and market models that could be scaled and exported across Europe. 

Public support and strong partnerships were also named as essential enablers. The projects presented by Ørsted and Ineos, for example, would not have been possible without strong political ambitions, clear political direction, and collaboration with key players such as Microsoft and Equinor. Subsidies and carbon removal credits (CDR) were highlighted as key mechanisms supporting the Ørsted CO₂ Kalundborg Hub. 

Another major takeaway is the need to build a scalable, market-driven model. Companies learn by doing – starting at a manageable scale and gradually developing toward a fully functioning market. The Danish market-based model, which involves operators holding responsibility for the full value chain, is considered a way to gain hands-on experience. Looking ten years ahead, the speakers pointed to the potential for cross-border CO₂ imports and Denmark’s evolution from meeting national targets to contributing significantly to EU-wide decarbonisation. 

Speakers included: 

• Kathrine Høeg Johansen, Program Director, Ørsted, Kalundborg CO₂ Hub 
• Søren Reinhold Poulsen, Head of Producing Asset and CCS, Ineos Denmark 
• Jens Ole Madsen, Market Director, Green Fuels, COWI. 

The session was facilitated by Valeria Guerrieri Fussinger, Associate Director, COWI.