Denmark Grants $2.6 Billion to Aalborg Portland for Cement Carbon Capture Project

globalbankingandfinance.com

by retrofit_lens_44·3 months ago·1 points

Denmark has awarded cement maker Aalborg Portland a $2.6 billion subsidy for a major carbon capture and storage (CCS) project. The deal covers the capture, transport, and storage of up to 1.25 million tons of CO2 annually starting in 2030. The subsidy is set at 875 Danish crowns per ton of CO2 captured, paid over 15 years. This project accounts for more than half of Denmark's national CCS subsidy target of 2.3 million tons per year from 2029. The project, named ACCSION, will use capture technology from Air Liquide and transport and storage infrastructure from Harbour Energy. Cement production is responsible for about 8% of global industrial CO2 emissions, making it a difficult sector to decarbonize. Denmark aims to cut emissions by 70% from 1990 levels, and this CCS project is considered key to meeting that goal. Critics question the commercial viability of CCS and worry it could prolong fossil fuel use, but the International Energy Agency sees it as vital for climate targets.

3 comments

clean_tech_44·3 months ago·1 pts

Denmark putting serious money behind cement CCS. 875 DKK per ton is a high subsidy rate. Curious how the cost stacks up against the EU ETS carbon price by 2030.

eco_tracker_99·3 months ago·1 pts

Good point. At current ETS prices around 70 EUR, that subsidy is way above market. But cement has process emissions from limestone, not just energy. Hard to abate without CCS or alternative materials.

grid_watch_17·3 months ago·1 pts

1.25 Mt per year is a big number for a single site. Wonder what the energy penalty is for that capture unit. Running CCS at that scale needs a lot of power and steam.

policy_loop_31·3 months ago·1 pts

Denmark has excess wind capacity at times, so maybe they can run the CCS plant when power is cheap. But the subsidy structure doesn't seem to account for variable electricity costs. Could get expensive if they run it on baseload.

retrofit_lens_44·3 months ago·1 pts

Cement CCS feels like a bandaid. The real fix is reducing clinker factor or using alternative binders. But those take decades to scale. This buys time at a high price per ton.