The current rules on geological storage of CO2 are found in the Act on Use of the Danish Subsoil (the Subsoil Act) with later amendments and in the CCS Order. When the CCS Directive was implemented in the Subsoil Act in 2011 and subsequently in the CCS Order, Denmark chose not to distinguish between geological storage of CO2 of less than 100 kilotonnes for the purpose of research, development or testing of new products and processes and other geological storage of CO2. Legislation introducing a less comprehensive approval process for geological storage of CO2 of less than 100 kilotonnes to promote the necessary research and development in the field of geological storage of CO2 was introduced in 2022.
Moreover, a process for strategic Environmental Impact Assessment for onshore and near-shore storage has been initiated and at the time of writing this report it was expected that a first tender for investigation and storage licenses for onshore storage will open Q4 2023.
3.2 Finland
3.2.1 National context
The revised Finnish Climate Act (423/2022) entered into force in July 2022. Its key objective is to ensure that Finland will achieve carbon neutrality by 2035 at the latest. The Act includes an updated emission reduction target for 2050 and new emission reduction targets to be reached by 2030 and 2040, respectively (60 percent reduction by 2030, 80 percent by 2040 and 90 percent by 2050 with a view to reach 95 percent reduction).
Plans include a Medium-term Climate Change Plan, a Climate plan for the land use sector, a National Climate Change Adaptation Plan and a Long-term Climate Plan. In addition, a Climate and Energy Strategy has been prepared every parliamentary term.
There are around 70 large facilities emitting CO2 in Finland (including CO2 of both fossil and biogenic origin). These are located at coastal as well as inland sites.
Ongoing CCUS-related activities in Finland include:
The Sustainable Growth Programme for Finland allocated EUR 150 million to hydrogen and carbon capture and utilisation projects.
E-fuels will be included in the transport fuel distribution obligation from the beginning of 2023.
CCUS technologies to reduce CO2 emissions caused by waste incineration will be piloted.
A strategic research project for carbon use and removals by the Finnish government has been carried out.
As mentioned in section 2.5, the CCS Directive allows Member States to choose not to permit storage within their territory. Finland has chosen to do so, only allowing storage that does not exceed 100 000 tonnes for the purpose of research or the development and testing of new products and processes. In the Government Bill on implementation of the CCS Directive, it is explained that the prohibition of storage of CO2 in Finnish territory is due to that there are no known geological formations appropriate for storage. However, it is further stated in the Government Bill that the prohibition can be revaluated in the future in light of new CCS technology and new investigations on the possibility of geological storage of CO2 within Finland's territory or in its economic zone.
3.2.2 Permits for capturing CO2
When transposing the CCS Directive amendments were made to Finland’s Environmental Protection Act which regulates when environmental permits are needed. Permits are needed inter alia for activities which entail a risk of pollution of the environment, and which are specified in annex 1 to the Act. The capturing of CO2 streams from facilities require a permit when the captured CO2 is going to be geologically stored.
The Act states that permits regarding CO2 capture shall be combined with the necessary conditions to ensure compliance with the Finnish quality requirements for CO2 streams and obligations relating to CO2 capture. The quality requirements of CO2 streams come across as a direct implementation of those in the CCS Directive.
The capturing process and permits for capturing facilities are not directly regulated in the CCS Directive. Finland has set out several requirements regarding the obligations relating to CO2 capture. Firstly, an actor separating CO2 must ensure that an analysis of the composition of the CO2 stream, including corrosive substances, and a risk assessment is carried out. Secondly, CO2 may only be captured if the CO2 stream's content of substances according to the risk assessment will not exceed the level specified in the quality requirements mentioned above. Thirdly, an actor separating CO2 must keep a record of the quantity, properties and composition of the CO2 streams delivered for geological storage.
3.2.3 Permits for transportation and intermediate storage of CO2
The Finnish Energy Authority can, under certain conditions and after an application, authorise an actor capturing CO2 access to a transport network not operated by that actor, if the operator of the network and the actor are unable to agree on access. The Authority can also, after the application of the actor, order the owner of the transport network to make the necessary changes to the network due to the actor joining the network or to the fact that the demand of transport has risen. This is a direct implementation of the CCS Directive. If the transport network in part runs in another state’s territory a special provision applies.
CO2 that has been captured within Finland can be handed over for storage in a location that is in its entirety situated within the territory, exclusive economic zone, or contented shelf of an EU Member State.
The building of a transport network shall be based on a so-called binding plan., The provisions of the Land Use and Building Act are applicable on the planning and building of the transport network.
Special regulation is in place in Finland for pressure-bearing arrangements in the Act on Pressure-Bearing Arrangements (869/1999) which applies to cisterns, pipe systems and other technical assemblies, including pipelines and cisterns that transport or intermediately store compressed CO2 at elevated pressure.
3.3 Iceland
3.3.1 National context
Iceland has a target to reduce GHG emissions at least 55 percent by 2030 compared to 1990 to be achieved by acting jointly with EU Member States and Norway. There is also a target to reach climate neutrality no later than 2040, which has been written into the climate act, and that Iceland shall be fossil fuel-free by 2040.
Iceland first implemented the CCS Directive in their Climate Law. The storage of CO2 on industrial scale in Iceland was forbidden at the first implementation. The political agenda however changed, and storage in Iceland was later allowed. Amendments to the legislation were made 2021 to enable CO2 storage at industrial scale. Before those amendments only research projects were permitted. The implementation is now being carried out in the Health and Pollution Prevention Act.
Iceland has special geological circumstances. Since 2012, the company Carbfix develops a unique technology for CO2 storage. It involves dissolving CO2 in water and the subsequent injection into basaltic layers, where it solidifies through mineralisation in less than two years. So-far, Carbfix has been operated as what would be classified as a research project according to the CCS Directive. However, the storage activities are approaching the upper limit for research of 100 kilotonnes CO2.
In 2019 a declaration of intent was signed between the government, Carbfix and 5 other companies. The parties of the declaration agree to investigate if the Carbfix method is suitable for reducing CO2 emissions from heavy industry in Iceland. The work is still in progress.
There is one demonstration plant (ORCA) for DACCS in Iceland. The heat and electricity required to run the direct air capture process is supplied by the Hellisheidi Geothermal Power Plant and the captured CO2 is injected by Carbfix.
Carbfix is planning to build a CO2 storage hub with a terminal that would enable import of CO2 to Iceland via ships, e.g., from European industry. The project recently received a large grant from the EU Innovation fund. The methodology and implementation will be verified by DNV.
Iceland is currently looking further into regulations and legal frameworks, including issues related to CO2 import and the EU ETS.