Denmark Awards $2.6 Billion for Cement Carbon Capture

Denmark has committed approximately $2.6 billion in support for carbon capture and storage (CCS) at the cement operations of Aalborg Portland, the country’s largest CO2 emitter. The funding, awarded by Denmark’s energy agency under a newly signed contract, will begin to be disbursed from 2030 and is intended to support the deployment of CCS technology at the company’s facilities. The initiative forms part of Denmark’s broader effort to cut greenhouse gas emissions by 70% compared with 1990 levels, while advancing cement carbon capture in one of the most difficult industrial sectors to decarbonize.

Commenting on the project, Aalborg Portland CEO Soren Holm Christensen said: “We can now take the decisive step toward realising a project that is not only significant in a Danish context, but is also among the largest industrial CO2 (carbon dioxide) capture projects in Europe.” Cement manufacturing accounts for roughly 8% of global industrial CO2 emissions, with emissions generated both from fuels used to heat kilns and from the chemical process that converts limestone into clinker.

Under the agreement, Aalborg Portland will receive 875 crowns for each ton of CO2 captured. The arrangement corresponds to annual support of up to 1.1 billion crowns over a 15-year period. The subsidies are designed to cover the capture, transportation and storage of as much as 1.25 million tons of CO2 each year. The company said the project is expected to contribute more than half of the Danish CCS subsidy programme’s target of capturing 2.3 million tons of CO2 annually from 2029.

Aalborg Portland also confirmed that Air Liquide will supply the carbon capture technology, while Harbour Energy will be responsible for transport infrastructure and storage services. The project positions cement carbon capture as a key component of Denmark’s industrial decarbonization strategy. While the International Energy Agency has stated that CCS technology can play an important role in meeting global climate objectives, critics continue to question its commercial viability and argue that it may extend reliance on fossil fuels.