Project Greensand to receive Danish Government funding of DKK 197 million (€26 million) for CO2 storage in the North Sea

• The largest single grant ever awarded in Denmark
• Project Greensand is amongst the frontrunners of CO₂storage projects in Europe.
• “This is a huge achievement and a big step towards the net zero ambition for INEOS”, said David Bucknall, CEO of INEOS Energy.
• The project has the potential to support Denmark’s wider CO₂emission reduction targets for 2030 and beyond.

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The Danish Energy Agency has announced that it will award 197 million DKK (€26 million) to the INEOS led consortium backing Project Greensand for CCS (carbon capture storage). The carbon storage project will support Denmark’s ambitions to reach a 70% CO₂ reduction by 2030.

"We are very pleased and thankful for the trust that has been shown to the entire consortium behind Project Greensand. Carbon capture storage is one of the steps needed to reach the ambitious climate goals in Denmark, and we as a consortium are very proud to be allowed to contribute to that through this project,” said David Bucknall, CEO INEOS Energy.

The award is based on a political decision by The Danish Government and a broad majority of political parties in December 2020 to allocate a total of DKK 197 million earmarked for the development and demonstration of CO₂ storage in the North Sea.

“The entire consortium has been waiting in the starting block and we are ready to start working on the project so we can help reach the ambitious climate ambitions as soon as possible,” said Mads Gade, Head of INEOS Energy, Denmark.

“This is a huge achievement and a big step towards the net zero ambition for INEOS”, said David Bucknall, CEO of INEOS Energy.

The Storage potential in Project Greensand is ½-1 million ton of CO₂ per year from 2025, increasing to 4-8 million tons of CO₂ per year by 2030. The Greensand Area could account for all of the CO₂ storage proposed in the Danish Climate Program.

ENDS

Media Contacts:

Richard Longden (INEOS)                                              +41 21 627 7063 or + 41 7996 26123
Peter Hindsberger (INEOS Oil & Gas Denmark)          +45 301 86697
Mark Killick (Mediazoo)                                                 +44 207 052 4838 or +44 7836 634449
Andrew McLachlan (Mediazoo)                                    +44 207 384 6980 or +44 7931 37716

Note to Editors.

About Greensand

• The primary objective of the Greensand project is to safely and permanently store, potentially up to 8m tonnes of CO₂ per annum in the INEOS operated Siri area.
• The storage potential, if achieved, will contribute significantly to Denmark’s 2030 overall emissions reduction target
• The Greensand project has three phases: Appraisal, Pilot (Proof of concept) and Full project execution.
• The Completed Appraisal phase had field owners INEOS, and Wintershall Dea, plus consortium members Maersk Drilling and Danish Government backed GEUS.
• The project recently cleared a major hurdle as DNV GL independently certified that the Nini West field is conceptually suitable for injecting 0.45 million tons CO₂ per year per well for a 10-year period, and that the subsea reservoir can safely contain the CO₂.
• Planning for the Pilot phase (Proof of concept) is now underway with the potential to start immediately following the implementation of the agreements outlined in the Danish North Sea Agreement of December 2020.
• The FID for full-scale project will commence after proof of concept, planned FID in second half 2023, and will have an estimated delivery duration of around 24 months after which carbon storage could be operational from around 2025.
• The Paleocene sandstone fields of the Siri Area in the Danish North Sea are located at an optimal depth of 1.5-2.2km and are encased in one of the most competent cap rocks in the North Sea.
• The area is geologically extremely stable and has retained gas and oil for 10-20 million years, the area constitutes a very safe permanent storage site for CO₂.
• In Phase 1, the Greensand Consortium demonstrated that viability of the development of a CO2 storage site. The assessment was certified by DNV. The Storage potential is ½-1 million ton of CO2 per year from 2025, increasing to 4-8 million tons of CO₂ per year by 2030. Hence, the Greensand Area can account for all of the CO₂ storage proposed in the Danish Climate Program.

About the Greensand Consortium

The consortium comprises major Danish companies, international companies with expertise in carbon capture, international research institutes and universities, as well as small Danish start-ups with groundbreaking ideas on monitoring technologies.