CarbonCuts applies to the Danish Energy Agency for license to explore the possibility of establishing Project ‘Ruby’ – a CO₂ storage facility in the Rødby structure on Lolland

Kgs. Lyngby, January 24, 2024 CarbonCuts A/S has today applied to the Danish Energy Agency for a license to explore the Rødby geological structure on Lolland with ‘Project Ruby’. The application follows the Danish Energy Agency’s invitation to interested operators to apply for a license to establish CO₂-storages in five Danish areas selected by the state. With this step, CarbonCuts cements its ambition to establish one of the country’s first CO₂ storage facilities and contribute to achieving Denmark’s climate goals. At the same time, CarbonCut’s full ownership is transferred to BlueNord, and the board is strengthened. The vision is to be able to store around 1 million tons ofCO₂ per year from 2030 with the potential to start storage activities even earlier.

Project ‘Ruby’: Ideal combination of geology and geography
Project Ruby is more than just a CO₂ storage facility; it’s a vision that puts Denmark’s geological advantages into practice. Located in the Rødby structure, a 20 km long and 10 km wide underground formation on land, the project is a unique opportunity for safe and efficient CO₂ storage.

“Today is a major milestone for us. We have long shown our interest in establishing aCO₂storage facility in Rødby and have worked intensively on defining the project and preparing the application for months”, says Ken Wesnæs, founder and CEO of CarbonCuts.

As part of the preparations, CarbonCuts has been in dialog with authorities, politicians, landowners, citizens and others in the Rødby area over the past year. With Business Lolland Falster as a key player, the dialog is about how different sectors and industries can collaborate and co-create local green transition. The citizen dialogue is also important, CarbonCuts wants to increase the dialogue with citizens about CO₂ storage and local green projects, while the Danish Energy Agency over the coming months will decide who gets the license.

“Now the application has been submitted, we want to share more about our ambitions and plans with all interested parties, including the citizens of the Rødby area. Many people don’t know much aboutCO₂ storage, so there’s a lot to talk about,” says Wesnæs and elaborates: “The Rødby structure is nature’s gift to us. From a geological point of view, it’s perfect forCO₂ storage, and the location by the Baltic Sea is ideal to help both Danish emitters and Denmark’s neighbors in the fight against climate change,” he explains.

Strategic transportation and reception ofCO₂

The project’s location close to Rødbyhavn emphasizes the international potential. “We plan to receiveCO₂ via tankers, which opens the door for a broad spectrum of cooperation with countries around the Baltic Sea with limited possibilities to store CO₂,” says Wesnæs. The approach ensures that CarbonCuts can play a central role in the region’s climate action, especially for industries facing major challenges in their transition to greener alternatives.

CarbonCuts’ approach to CO₂ storage is not only limited to traditional sources, because storing biogenic CO₂ is also an option, for example from biogas plants.“With biogenic storage, we can achieve ‘negativeCO₂ emissions’ and this is an exciting opportunity that can accelerate our progress towards a more sustainable future,” adds Wesnæs.

CarbonCuts is considering several methods to receive CO₂ via tankers to Rødbyhavn, including direct delivery to the quayside, via a purpose-built barge near the port or on a barge moored to a buoy further out to sea. CO₂ can also arrive via train or truck. With support from the Maritime Foundation, CarbonCuts is already investigating the use of a large barge for intermediate storage before the CO₂ is pumped down for permanent underground storage.

Change of ownership and strengthened board of directors

Since its establishment, CarbonCuts has been supported by BlueNord, which has a significant presence in the Danish North Sea activities through its ownership in Dansk Undergrunds Consortium (DUC). Following the submission of the license application, CarbonCuts will become a fully owned subsidiary of BlueNord and will therefore continue to enjoy the full financial and technical support of its sole shareholder. “We recognize the important role we play in Denmark and CarbonCuts is a great opportunity for BlueNord to drive strategic and effective sustainability activities. The Ruby project is vital to both the climate and Denmark’s carbon storage ambitions and we look forward to moving forward with CarbonCuts in a strong position as a full member of the BlueNord group,” says Euan Shirlaw, CEO of BlueNord.

CarbonCuts also expands its board with Maj Wendorff, an experienced geologist and leader from the oil and gas industry, former State Geologist at GEUS, and now Head of Market Energy and CO₂ Storage at Ramboll.“Maize’s in-depth knowledge is very valuable for our work withCO₂ storage. And with BlueNord’s full ownership and May’s expertise, CarbonCuts is strongly positioned to drive Denmark’sCO₂ storage efforts,” Wesnæs emphasizes.

The future of Project ‘Ruby’

Establishing a future CO₂ storage facility requires extensive planning, both detailed subsurface mapping and analysis. It also requires investigation and calculation of different technological scenarios in terms of how best to design and optimize the infrastructure with a focus on both economy and sustainability.

As CarbonCuts prepares for the next phases of ‘Ruby’, including seismic surveys expected next winter if CarbonCuts wins the license, the focus remains firmly on the goal: to launch a sustainable storage solution with associated infrastructure that can contribute to meeting Denmark’s CO₂ target and serve as inspiration for CO₂ storage globally.

Visit the Ruby Project website

About CarbonCuts.

CarbonCuts, established in 2022, is a Danish company with plans to build and operate ‘Project Ruby’, a CO₂ storage facility near Rødby on Lolland. The area has been designated by the Danish state for its geological suitability for CO₂ storage. The Danish Energy Agency is expected to issue a license to explore the area in 2024. Lyngby and as a subsidiary of BlueNord, which owns a significant share of DUC (Dansk Undergrunds Consortium), CarbonCuts has access to extensive knowledge of the energy sector and the Danish underground. BlueNord’s insight and capital base strengthens CarbonCuts’ position as a CO₂ storage operator.

PRESS INFORMATION IN ENGLISH:

CarbonCuts applies to the Danish Energy Agency for permission to explore the possibility of establishing ‘Project Ruby’
– an onshoreCO₂ storage facility in the Rødby Structure on Lolland

Kgs. Lyngby, January 24, 2024: CarbonCuts has today applied to the Danish Energy Agency for permission to explore the geological Rødby Structure on Lolland with ‘Project Ruby’. This application follows the Agency’s invitation to interested operators to apply for licenses to establishCO₂ storage in five areas selected by the state. With this step, CarbonCuts reinforces its ambition to establish one of the country’s firstCO₂ storage facilities and contribute to meeting Denmark’s climate goals. Concurrently, CarbonCuts transfers full ownership to BlueNord, and strengthens its board. The vision is to store about 1 million tons ofCO₂ per year from 2030 with the potential to start the storage activities earlier.

Project ‘Ruby’: Ideal combination of geology and geography

Project ‘Ruby’ is more than just a CO₂ storage facility; it is a vision that translates Denmark’s geological advantages into practice. Located in the Rødby structure, a 20 km long and 10 km wide underground formation on land, the project presents a unique opportunity for safe and efficient CO₂ storage.“Today marks a significant milestone for us. We have long shown our interest in establishing aCO₂ storage facility in Rødby and have worked intensely on defining the project and preparing the application for months,” says Ken Wesnæs, founder and CEO of CarbonCuts.

As part of its preparations, CarbonCuts has been in dialog over the past year with authorities, politicians, landowners, citizens, and others in the Rødby area. With Business Lolland Falster as a central player, the dialog has focused on how different sectors and industries can collaborate and co-create local green transition. Citizen dialogue is also important for CarbonCuts, which aims to increase discussions with citizens about CO₂ storage and local green projects while the Danish Energy Agency chooses the licensee over the coming months.

“Now that the application is submitted, we want to share more about our ambitions and plans with all interested parties, including the people living in the Rødby area. Many are not familiar withCO₂ storage, so there is much to talk about,” says Wesnæs, elaborating: “The Rødby Structure is nature’s gift to us. Geologically, it’s perfect forCO₂ storage, and its location by the Baltic Sea is ideal for helping both Danish emitters and Denmark’s neighbors in the fight against climate change,” he explains.

Strategic Transport and Reception ofCO₂

Ruby’s location near Rødbyhavn highlights its international potential. “We plan to receiveCO₂ via tankers, which opens the door for a broad spectrum of cooperation with countries around the Baltic Sea with limited options for storing CO₂,“ says Wesnæs. This approach ensures that CarbonCuts can play a central role in the region’s climate efforts, especially for industries facing significant challenges in transitioning to greener alternatives.

CarbonCuts’ approach to CO₂ storage is not limited to traditional sources, as storing biogenic CO₂ is also a possibility, for example, from biogas plants. “With biogenic storage, we can achieve ‘negativeCO₂ emissions,’ an exciting opportunity that can accelerate Denmark’s progress towards a more sustainable future,” adds Wesnæs.

CarbonCuts is considering several methods to receive CO₂ via tankers at Rødbyhavn, including direct delivery to the quay, via a specially built barge near the harbor, or on a barge moored to a buoy further out at sea. CO₂ could also arrive by train or truck. With support from the Danish Maritime Fund, CarbonCuts is already investigating using a large barge as an intermediate storage before CO₂ is pumped down for permanent storage underground.

Strengthening the ownership and the board

CarbonCuts has to date been supported by BlueNord, who has a significant presence in Danish North Sea activities through its ownership in the Danish Underground Consortium (the “DUC”). Following the submission of the license application, CarbonCuts has become a wholly-owned subsidiary of BlueNord and will continue to benefit from the full financial and technical support of its sole shareholder. “CarbonCuts provides a fantastic opportunity for BlueNord to drive strategic and effective sustainability activities, recognizing the important role that we have to play in Denmark. The Ruby project is crucial for both the climate and Denmark’s CO₂storage ambitions, and we look forward to moving forward with CarbonCuts in a strong position as a full member of the BlueNord group”, says Euan Shirlaw, Chief Executive Officer in BlueNord.

CarbonCuts also expands its board with Maj Wendorff, an experienced geologist and leader from the oil and gas industry, former state geologist at GEUS, and now Head of Market Energy and CO₂ Storage at Rambøll.“Maj’s in-depth knowledge is very valuable for our work withCO₂ storage. With BlueNord’s full ownership and Maj’s expertise, CarbonCuts is strongly positioned to drive Denmark’sCO₂ storage effort,” Wesnæs ends.

The Future of Project ‘Ruby’

Establishing a future CO₂ storage facility requires extensive planning, including detailed mapping of the subsurface and analysis of the geological data. It is also vital to examine and calculate various technological scenarios concerning how the infrastructure is best designed and optimized, both sustainably and economically.

As CarbonCuts prepares for the next phases of ‘Ruby’, including seismic surveys expected to be conducted next winter should CarbonCuts win the license. The focus remains firm on the goal: to launch a sustainable storage solution with accompanying infrastructure that can contribute to fulfilling Denmark’s CO₂ goals and serve as an inspiration for CO₂ storage globally.

Visit the Ruby Project website

About CarbonCuts
Established in 2022, CarbonCuts is a Danish company planning to develop and operate ‘Project Ruby,’ a CO₂ storage facility in Rødby on Lolland. The area has been designated by the Danish state for its geological suitability for CO₂ storage. The Danish Energy Agency is expected to issue a license to explore the area in 2024. CarbonCuts has applied for such license. Headquartered in Kgs. Lyngby and as a subsidiary of BlueNord, which owns a significant share of the Danish Underground Consortium (DUC), CarbonCuts has access to extensive knowledge of the energy sector and the Danish subsurface. BlueNord’s insights and capital strengthen CarbonCuts’ position as a CO₂ storage operator.