The Danish Energy Agency DEA Tender

Title: Tender For Contract On Subsidy For Carbon Capture, Transport And Storage description: The Ccs Fund 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. This Call For Tenders Concerns The Deployment Of The Ccs Fund. 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”). The Contract(s) The Danish Energy Agency (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”). As Described In The Tender Documents, The Operator Shall Each Year From 2030 Until (and Including) 2044 Capture And Permanently, Geologically Store A Fixed Quantity Of Co2 (“annual Quantity”). The Operator May Also Offer To Capture And Store Co2 From 1 January 2029 At The Earliest Until (and Including) 31 December 2029 (“2029-quantity”). The Operator May Base Their Project On Co2 Capture From One Point Source Or Direct Air Capture Plant, A Combination Of Point Sources Or Direct Air Capture Plants Or A Portfolio Of Several Point Sources Or Direct Air Capture Plants. The Operator May Be Any Economic Operator Or A Group Of Operators Willing To Assume The Responsibility For Achieving The Co2 Emission Reductions And/or Negative Co2 Emissions In Accordance With The Contract By Performing The Contract By Itself And/or By Engaging Sub-suppliers. The Total Maximum Available Subsidy Of The Ccs Fund Is Dkk 28,659,200,000.00 (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. The Ccs Fund Shall Cover Potential Derived Tax Losses That Stem From The Award Of Contract(s) To Tenderers Who Will Avoid National Co2 Related Taxes By Capturing And Storing Their Co2 Emissions. As Such, The Total Available Annual Funds Depends On The Composition Of The Final Contract Recipient(s). The Total Available Annual Funds For The Period 2029-2044 Can, At Most, Be Dkk 1,791,200,000.00 (2025-prices, Including Vat). The Value Stated In Section 2.1.3 Is The Total Available Funds Of The Ccs Fund And Thus Including Vat And Including Potential Derived Tax Losses. The Subsidy Will Be Paid Per Tonne Co2 Captured And Stored In Accordance With The Contract. The Offered Rate Per Tonne Co2 Will Be Adjusted Throughout The Contract Period As Described In Appendix 5, Subsidy And Economy Scheme. The Dea Will Award One Or More Contract(s) Dependent On The Available Funds Based On The Received Offers. The Contract Is Not Divided Into Predefined Lots. The Dea Considers That The Funds Are Deployed Most Efficiently With Contract(s) Covering The Full Value Chain, In Order To Realize The Required Co2 Emission Reductions And/or Negative Emissions, And By Leaving The Award Of One Or More Contracts To The Market’s Ability To Capture And Store Different Quantities Of Co2 (with A Minimum Of 100,000 Tonnes Annually From 2030-2044) Within The Available Funds. The Competitive Bidding Process The Granting Of Subsidy Under The Ccs Fund Constitutes State Aid For Climate And Environmental Protection And Is Prepared Following The European Commission’s Guidelines On State Aid For Climate, Environmental Protection And Energy 2022 (ceeag). The Designation Of The Contract(s) As A Services Contract In This Contract Notice Etc. Does Not Change This. The Competitive Bidding Process Will Be Conducted As A Negotiated Procedure In Accordance With The Rules And Principles Of Section Ii Of The Danish Public Procurement Act. The Dea Will Notify 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. See Further The Tender Specifications, Paragraph 3. The Negotiation Process Is Expected To Be Conducted With One Negotiation Round. See Further The Tender Specifications And Appendix B. See The Tender Specifications, Paragraph 6, Regarding The Requirement Methodology. It Is Emphasised That All Requirements That Are Not Minimum Requirements May Be Subject To Negotiation And May Be Changed Or Withdrawn During The Tender Procedure According To The Dea’s Decision. Thus, The Dea Encourages All Economic Operators Who Can Comply With The Minimum Requirements (and Fulfil The Minimum Requirements For Participation, See Section 5.1.9) To Apply For Prequalification, Even If The Economic Operator Cannot Comply With All General Requirements. Also See The Tender Specifications Paragraph 14.2 And Appendix B, Regarding The Expected Topics For Negotiation.